Primary should wait for the ATO's ruling on Healthscope's revised offer for Symbion before pursuing Symbion itself. Acquiring Symbion would allow Primary to gain significant market share, create an integrated healthcare network, and realize $95 million in annual synergies. However, there are regulatory concerns around further consolidation in the industry. Primary's bid strategy should be to wait for the ATO's ruling and then either pursue Symbion directly or withdraw, depending on whether the ruling allows Healthscope's revised offer to proceed.
UBS Investment Banking Challenge - Campus Final pitch bookOscar Haman
Case study competition on past M&A transactions between Qube and the target company Asciano.
Completing this case involved:
- Valuing Asciano
- Computing an appropriate DCF based on economical assumption
- Computing a merger model between Qube & Asciano
- Devising an appropriate rationale to acquire Asciano
- Creating a strategic bidding and funding process
- Understanding the stevedoring, railway and freight industry
- Quantitative and qualitative analysis of synergies
UBS Investment Banking Challenge - Campus Final Pitch Book 2018 Oscar Haman
Case study competition on the past M&A transaction between Tatts Group Ltd and Tabcorp
Completing this case involved:
- Advising Tatts on how to proceed against the Tabcorp offer
- Creating a competitive bidding environment to force Tabcorp to raise their offers
- Market analysis of the gambling sector
- Valuation of Tatts through a DCF
- Constructing a merger model between Tatts and Tabcorp
- Devising various defence strategies against unfavourable takeover proposals
- Write-up of an ASX notice to Tatts' shareholders
- Creation of a decision tree to guide Tatts throughout this defence
Credit Suisse Fall 2015 Pitch Competitionjontripp17
The document discusses Credit Suisse seeking an anchor investment for its private equity fund. It recommends purchasing ABM Industries as a platform company to build upon through acquisitions. The recommendation analyzes ABM's industry exposure, growth strategy, margin expansion opportunities, management team, and potential exit opportunities for investors.
The document discusses strategic opportunities for The Clorox Company. It analyzes the company's current positioning, the macroeconomic and industry outlook, and provides an overview of four strategic options - maintaining the status quo, selling to a strategic acquirer, a leveraged buyout, or divesting a segment. The team recommends that Clorox divest the Kingsford brand through an auction process at a valuation of 16.0x EV/EBITDA to raise capital for growth opportunities and better align with consumer trends.
2020 - 13th Annual William Blair Investment Banking Case Competition Presenta...Demetre Carnot
Paesano's Products is a leading contract manufacturer and formulator for personal care and household products. The document discusses Paesano's industry, financials, growth opportunities, and strategic options moving forward. It recommends a full sale of Paesano's to a financial sponsor or strategic acquirer, valued between $700-760 million, to take advantage of high acquisition interest while retaining strong management.
Creighton team acg cup 2015 final round v final 2Lin Zhangde
The document provides a recommendation and analysis for Impact Capital Partners regarding the potential acquisition of ParentCo. It recommends that Impact Capital Partners make an offer to purchase ParentCo and its subsidiary FashionCo based on quantitative and qualitative analyses. The quantitative analysis values ParentCo's media business at $392 million and FashionCo at $180 million based on comparable company and precedent transaction multiples. The recommendation is supported by projections showing the acquisition generates positive returns meeting Impact Capital Partners' investment criteria.
William Blair Investment Banking Competition Slide DeckEric Bonelli
This document provides an executive summary for Paesano's Products, which manufactures household, personal care, and hospitality products. It evaluates Paesano's using valuation methods like comparable companies, precedent transactions, and DCF. Key points:
- Paesano's is well-positioned for growth in personal and household products due to pandemic demand.
- Valuation analysis values the company between $600-800 million.
- The summary recommends a sale to a middle market financial sponsor to optimize growth potential.
2017 William Blair & Company Investment Banking Case Competition - FinalistIan Socrates
- Patterson Education Group is a scalable education platform delivering exceptional student outcomes through individually tailored curriculums and a talented executive team.
- Valuation analysis values PEG's enterprise value between $157-$177 million based on comparable, precedent, and discounted cash flow analyses.
- The recommendation is to pursue a sale to a strategic buyer given industry consolidation trends and PEG's compelling growth profile and market position.
UBS Investment Banking Challenge - Campus Final pitch bookOscar Haman
Case study competition on past M&A transactions between Qube and the target company Asciano.
Completing this case involved:
- Valuing Asciano
- Computing an appropriate DCF based on economical assumption
- Computing a merger model between Qube & Asciano
- Devising an appropriate rationale to acquire Asciano
- Creating a strategic bidding and funding process
- Understanding the stevedoring, railway and freight industry
- Quantitative and qualitative analysis of synergies
UBS Investment Banking Challenge - Campus Final Pitch Book 2018 Oscar Haman
Case study competition on the past M&A transaction between Tatts Group Ltd and Tabcorp
Completing this case involved:
- Advising Tatts on how to proceed against the Tabcorp offer
- Creating a competitive bidding environment to force Tabcorp to raise their offers
- Market analysis of the gambling sector
- Valuation of Tatts through a DCF
- Constructing a merger model between Tatts and Tabcorp
- Devising various defence strategies against unfavourable takeover proposals
- Write-up of an ASX notice to Tatts' shareholders
- Creation of a decision tree to guide Tatts throughout this defence
Credit Suisse Fall 2015 Pitch Competitionjontripp17
The document discusses Credit Suisse seeking an anchor investment for its private equity fund. It recommends purchasing ABM Industries as a platform company to build upon through acquisitions. The recommendation analyzes ABM's industry exposure, growth strategy, margin expansion opportunities, management team, and potential exit opportunities for investors.
The document discusses strategic opportunities for The Clorox Company. It analyzes the company's current positioning, the macroeconomic and industry outlook, and provides an overview of four strategic options - maintaining the status quo, selling to a strategic acquirer, a leveraged buyout, or divesting a segment. The team recommends that Clorox divest the Kingsford brand through an auction process at a valuation of 16.0x EV/EBITDA to raise capital for growth opportunities and better align with consumer trends.
2020 - 13th Annual William Blair Investment Banking Case Competition Presenta...Demetre Carnot
Paesano's Products is a leading contract manufacturer and formulator for personal care and household products. The document discusses Paesano's industry, financials, growth opportunities, and strategic options moving forward. It recommends a full sale of Paesano's to a financial sponsor or strategic acquirer, valued between $700-760 million, to take advantage of high acquisition interest while retaining strong management.
Creighton team acg cup 2015 final round v final 2Lin Zhangde
The document provides a recommendation and analysis for Impact Capital Partners regarding the potential acquisition of ParentCo. It recommends that Impact Capital Partners make an offer to purchase ParentCo and its subsidiary FashionCo based on quantitative and qualitative analyses. The quantitative analysis values ParentCo's media business at $392 million and FashionCo at $180 million based on comparable company and precedent transaction multiples. The recommendation is supported by projections showing the acquisition generates positive returns meeting Impact Capital Partners' investment criteria.
William Blair Investment Banking Competition Slide DeckEric Bonelli
This document provides an executive summary for Paesano's Products, which manufactures household, personal care, and hospitality products. It evaluates Paesano's using valuation methods like comparable companies, precedent transactions, and DCF. Key points:
- Paesano's is well-positioned for growth in personal and household products due to pandemic demand.
- Valuation analysis values the company between $600-800 million.
- The summary recommends a sale to a middle market financial sponsor to optimize growth potential.
2017 William Blair & Company Investment Banking Case Competition - FinalistIan Socrates
- Patterson Education Group is a scalable education platform delivering exceptional student outcomes through individually tailored curriculums and a talented executive team.
- Valuation analysis values PEG's enterprise value between $157-$177 million based on comparable, precedent, and discounted cash flow analyses.
- The recommendation is to pursue a sale to a strategic buyer given industry consolidation trends and PEG's compelling growth profile and market position.
William Blair Investment Banking Case Competition Jake White
Performed comprehensive strategic analysis for a fictitious educational services provider to identify and evaluate potential exit opportunities that would position the company for strong future expansion. Constructed public comparables, precedent transactions, discounted cash flow and leveraged buyout analyses to form a valuation range.
Cleveland Research Company Stock Pitch Competition Finalist PresentationNick Meyerson
Finished in the top 5 teams, presented this slideshow to a panel of equity research analysts and associates, and fielded questions about Mobileye's capital structure, its share price's sensitivity to excitement in the media, and projections including a DCF analysis, comparables analysis, and multiple sensitivity analyses.
Was one of five teams to present in front of a panel of equity research analysts and associates. Pitched Mobileye (MBLY) stock as a buy with a 12 month price target of $70.00 with a 67% upside from its current share price. As of 9/9/2016, MBLY is up 31% since our pitch.
This document provides an analysis of Patterson Education Group (PEG) for a case competition. It includes:
- An executive summary that outlines PEG's unique personalized high school model and strong projected growth rates.
- An industry overview of the growing K-12 education sector and education technology industry.
- An analysis of PEG's business model, growth opportunities, and financial projections. Strengths include barriers to entry and technological advantages.
- A valuation of PEG using precedent transactions, comparable company analyses, and a discounted cash flow model, resulting in an estimated valuation range of $170-300 million.
- A discussion of strategic options such as organic growth through new schools and technology expansion, or
2015 - Cleveland Research Company Stock Pitch Competition Runner UpMichael T. Loffredo
Cytec Industries is positioned to benefit from growth in the aerospace, automotive, and mining industries. It has substantial contracts with Boeing and Airbus to supply lightweight composite materials for commercial aircraft. Legislation requiring automakers to improve fuel efficiency will increase demand for composites. In mining, decreasing ore grades are driving increased production and use of Cytec's separation chemicals. The analyst recommends Cytec as a buy with a 12-month price target of $70.50, representing 30.51% upside.
A 72-hour M&A case competition on whether Whole Foods Market should be taken private by The Blackstone Group, or seek out strategic partners in order to alleviate sliding margins and increased competition in the US organic and natural foods market.
Our solution, a strategic merger with Publix Super Markets and a public health-focused growth strategy was well-received by the judges from Guggenheim Partners.
SeaLink Travel Group is an Australian transportation company that recently acquired Transit Systems Group, diversifying into public transportation. This positions SeaLink for revenue growth from government contracts and recovery in tourism. X Capital recommends buying SeaLink, setting a target price of $4.33 based on expected contract wins and tourism rebound, offering a potential 68% return. Risks include losing government contracts or key personnel.
Placed 1st out of 20 teams advising board members of a medical technology company on various strategic alternatives and maximizing shareholder value by utilizing discounted cash flow (DCF), precedent transactions, and comparable companies in a pitchbook presentation
15th Annual William Blair Case CompetitionMickeyFanella
Talawanda Turbines is a leading designer and manufacturer of industrial fans and exhaust systems with $350 million in 2022 revenue. The company has a strong financial profile with high margins and growth. William Blair recommends Talawanda pursue a sale to a strategic buyer or financial sponsor at a valuation of $590-670 million to take advantage of consolidation in the fragmented industry. Potential buyers could leverage synergies to expand market presence.
The opportunity to explore how a company uses the Capital Asset Pricing Model (CAPM) to compute the cost of capital for each of its divisions. The use of Weighted Average Cost of Capital (WACC) formula and the mechanics of applying it are stressed.
This is a stock pitch for BlackBerry that was presented to faculty and investment professionals for the Cleveland Research Company Stock Pitch Competition in April 2017. My team's pitch was selected as one of the four finalist groups.
The acquisition of Genentech by Roche would provide several strategic benefits. It would increase Roche's market power in the biotechnology industry by acquiring Genentech's large market share and barrier to market entry. The acquisition also reduces Roche's financial and operational risks by diversifying its product portfolio. Synergies from cost cutting and new opportunities could generate an estimated net present value of $3.09 billion for Roche. Based on discounted cash flow, comparable company, and precedent transaction analyses, the estimated enterprise value for Genentech is $107 billion, implying an acquisition offer price of $98 per share.
BrickDiscovery provides end-to-end eDiscovery services to large corporations. Valuation analyses value the company between $433-$476 million. The analyses include precedent transactions, comparable companies, discounted cash flow, and leveraged buyout models. It is recommended that BrickDiscovery pursue a near-term sale to a financial sponsor to scale internationally, such as in Asia.
Assignment 3-week-3-the cost of capital for goff computer, inc-gm-dr rahul d ...drrahulparikh
The document discusses the cost of capital calculation for Goff Computer, Inc. using Dell as a representative company. It obtains financial data for Dell from SEC filings to calculate its cost of equity, cost of debt, and weighted average cost of capital (WACC). The WACC is calculated to be 11.5% using book values and 12.9% using market values. However, directly applying Dell's cost of capital may not be appropriate given differences in Goff's operations and financing.
COVID-19 has disrupted the global financial market and our team sought to exploit these arbitrage opportunities presented to create a U$500MM active portfolio across Equities, Fixed Income, FX, Cash, and Commodities. Our portfolio uses Markowitz Mean-Variance Optimization in allocating weights and its performance is constantly monitored against the benchmark FundX, which compromises of MSCI World Index (Equities), iShares Core U.S. Aggregate Bond ETF (Bond) and S&P GSCI Index (Commodities). We considered the risk and return tradeoffs, macroeconomic and microeconomic catalysts, quantitative data as well as qualitative information in our asset selections.
Team members: Emily Pope, Sharon Lee and Jayson Chaplin
Conducted numerous valuation methodologies and thorough research for Steinkeller Solutions, a highly specialized staffing firm focused on Life Sciences, Technologies, Healthcare IT, and Energy. Assessed Bloomberg data, company financials, and company strategy to make an informed strategic sale recommendation to a sponsor to William Blair bankers.
Presentation marriott study case cost of capitalBm Hakim
This document presents a case study on Marriott Corporation and estimating its weighted average cost of capital (WACC) for 1988. It provides background on Marriott, outlines the objectives and methodology, lists assumptions, and shows the results of estimating WACC for Marriott's lodging, restaurant, and services divisions as well as for the overall company. WACC was highest for restaurants at 11.05% and lowest for services at 5.74%, with the overall company WACC estimated at 8.04%. The conclusions discuss lessons on WACC estimation and how capital structure affects cost of capital.
The document summarizes the valuation of the Super Project being considered by General Foods. It identifies three methods used by General Foods to evaluate projects - incremental, facilities used, and fully allocated - each with advantages and disadvantages. The document recommends evaluating the Super Project using an incremental cash flow analysis that accounts for relevant cash flows and avoids non-cash expenses. It concludes the Super Project has a positive NPV and IRR above the discount rate under two of the three methods, so the investment should be undertaken.
Miami University 2016 Cleveland Research Company Stock Pitch Competition WinnerMichael T. Loffredo
Orbital ATK is an aerospace and defense company that provides products and services to government and commercial customers. The presentation recommends Orbital ATK as a buy with a 12-month price target of $110, representing 27.1% upside. Key points include Orbital ATK benefiting from international military spending increases, growth in commercial aircraft deliveries, and opportunities in satellite servicing. Risks include competition from larger players and potential issues executing innovative contracts.
Delivering Synergies : A closer look at post merger integrationSanjay Uppal
1) The document discusses Emirates NBD's integration process following its merger in 2007.
2) It outlines key stages of integration including designing an integration plan, establishing dedicated integration teams, and communicating expected synergies.
3) By mid-2008, Emirates NBD had exceeded synergy targets for the year, achieving cost savings and revenue increases through initiatives like branch consolidation and cross-selling.
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
William Blair Investment Banking Case Competition Jake White
Performed comprehensive strategic analysis for a fictitious educational services provider to identify and evaluate potential exit opportunities that would position the company for strong future expansion. Constructed public comparables, precedent transactions, discounted cash flow and leveraged buyout analyses to form a valuation range.
Cleveland Research Company Stock Pitch Competition Finalist PresentationNick Meyerson
Finished in the top 5 teams, presented this slideshow to a panel of equity research analysts and associates, and fielded questions about Mobileye's capital structure, its share price's sensitivity to excitement in the media, and projections including a DCF analysis, comparables analysis, and multiple sensitivity analyses.
Was one of five teams to present in front of a panel of equity research analysts and associates. Pitched Mobileye (MBLY) stock as a buy with a 12 month price target of $70.00 with a 67% upside from its current share price. As of 9/9/2016, MBLY is up 31% since our pitch.
This document provides an analysis of Patterson Education Group (PEG) for a case competition. It includes:
- An executive summary that outlines PEG's unique personalized high school model and strong projected growth rates.
- An industry overview of the growing K-12 education sector and education technology industry.
- An analysis of PEG's business model, growth opportunities, and financial projections. Strengths include barriers to entry and technological advantages.
- A valuation of PEG using precedent transactions, comparable company analyses, and a discounted cash flow model, resulting in an estimated valuation range of $170-300 million.
- A discussion of strategic options such as organic growth through new schools and technology expansion, or
2015 - Cleveland Research Company Stock Pitch Competition Runner UpMichael T. Loffredo
Cytec Industries is positioned to benefit from growth in the aerospace, automotive, and mining industries. It has substantial contracts with Boeing and Airbus to supply lightweight composite materials for commercial aircraft. Legislation requiring automakers to improve fuel efficiency will increase demand for composites. In mining, decreasing ore grades are driving increased production and use of Cytec's separation chemicals. The analyst recommends Cytec as a buy with a 12-month price target of $70.50, representing 30.51% upside.
A 72-hour M&A case competition on whether Whole Foods Market should be taken private by The Blackstone Group, or seek out strategic partners in order to alleviate sliding margins and increased competition in the US organic and natural foods market.
Our solution, a strategic merger with Publix Super Markets and a public health-focused growth strategy was well-received by the judges from Guggenheim Partners.
SeaLink Travel Group is an Australian transportation company that recently acquired Transit Systems Group, diversifying into public transportation. This positions SeaLink for revenue growth from government contracts and recovery in tourism. X Capital recommends buying SeaLink, setting a target price of $4.33 based on expected contract wins and tourism rebound, offering a potential 68% return. Risks include losing government contracts or key personnel.
Placed 1st out of 20 teams advising board members of a medical technology company on various strategic alternatives and maximizing shareholder value by utilizing discounted cash flow (DCF), precedent transactions, and comparable companies in a pitchbook presentation
15th Annual William Blair Case CompetitionMickeyFanella
Talawanda Turbines is a leading designer and manufacturer of industrial fans and exhaust systems with $350 million in 2022 revenue. The company has a strong financial profile with high margins and growth. William Blair recommends Talawanda pursue a sale to a strategic buyer or financial sponsor at a valuation of $590-670 million to take advantage of consolidation in the fragmented industry. Potential buyers could leverage synergies to expand market presence.
The opportunity to explore how a company uses the Capital Asset Pricing Model (CAPM) to compute the cost of capital for each of its divisions. The use of Weighted Average Cost of Capital (WACC) formula and the mechanics of applying it are stressed.
This is a stock pitch for BlackBerry that was presented to faculty and investment professionals for the Cleveland Research Company Stock Pitch Competition in April 2017. My team's pitch was selected as one of the four finalist groups.
The acquisition of Genentech by Roche would provide several strategic benefits. It would increase Roche's market power in the biotechnology industry by acquiring Genentech's large market share and barrier to market entry. The acquisition also reduces Roche's financial and operational risks by diversifying its product portfolio. Synergies from cost cutting and new opportunities could generate an estimated net present value of $3.09 billion for Roche. Based on discounted cash flow, comparable company, and precedent transaction analyses, the estimated enterprise value for Genentech is $107 billion, implying an acquisition offer price of $98 per share.
BrickDiscovery provides end-to-end eDiscovery services to large corporations. Valuation analyses value the company between $433-$476 million. The analyses include precedent transactions, comparable companies, discounted cash flow, and leveraged buyout models. It is recommended that BrickDiscovery pursue a near-term sale to a financial sponsor to scale internationally, such as in Asia.
Assignment 3-week-3-the cost of capital for goff computer, inc-gm-dr rahul d ...drrahulparikh
The document discusses the cost of capital calculation for Goff Computer, Inc. using Dell as a representative company. It obtains financial data for Dell from SEC filings to calculate its cost of equity, cost of debt, and weighted average cost of capital (WACC). The WACC is calculated to be 11.5% using book values and 12.9% using market values. However, directly applying Dell's cost of capital may not be appropriate given differences in Goff's operations and financing.
COVID-19 has disrupted the global financial market and our team sought to exploit these arbitrage opportunities presented to create a U$500MM active portfolio across Equities, Fixed Income, FX, Cash, and Commodities. Our portfolio uses Markowitz Mean-Variance Optimization in allocating weights and its performance is constantly monitored against the benchmark FundX, which compromises of MSCI World Index (Equities), iShares Core U.S. Aggregate Bond ETF (Bond) and S&P GSCI Index (Commodities). We considered the risk and return tradeoffs, macroeconomic and microeconomic catalysts, quantitative data as well as qualitative information in our asset selections.
Team members: Emily Pope, Sharon Lee and Jayson Chaplin
Conducted numerous valuation methodologies and thorough research for Steinkeller Solutions, a highly specialized staffing firm focused on Life Sciences, Technologies, Healthcare IT, and Energy. Assessed Bloomberg data, company financials, and company strategy to make an informed strategic sale recommendation to a sponsor to William Blair bankers.
Presentation marriott study case cost of capitalBm Hakim
This document presents a case study on Marriott Corporation and estimating its weighted average cost of capital (WACC) for 1988. It provides background on Marriott, outlines the objectives and methodology, lists assumptions, and shows the results of estimating WACC for Marriott's lodging, restaurant, and services divisions as well as for the overall company. WACC was highest for restaurants at 11.05% and lowest for services at 5.74%, with the overall company WACC estimated at 8.04%. The conclusions discuss lessons on WACC estimation and how capital structure affects cost of capital.
The document summarizes the valuation of the Super Project being considered by General Foods. It identifies three methods used by General Foods to evaluate projects - incremental, facilities used, and fully allocated - each with advantages and disadvantages. The document recommends evaluating the Super Project using an incremental cash flow analysis that accounts for relevant cash flows and avoids non-cash expenses. It concludes the Super Project has a positive NPV and IRR above the discount rate under two of the three methods, so the investment should be undertaken.
Miami University 2016 Cleveland Research Company Stock Pitch Competition WinnerMichael T. Loffredo
Orbital ATK is an aerospace and defense company that provides products and services to government and commercial customers. The presentation recommends Orbital ATK as a buy with a 12-month price target of $110, representing 27.1% upside. Key points include Orbital ATK benefiting from international military spending increases, growth in commercial aircraft deliveries, and opportunities in satellite servicing. Risks include competition from larger players and potential issues executing innovative contracts.
Delivering Synergies : A closer look at post merger integrationSanjay Uppal
1) The document discusses Emirates NBD's integration process following its merger in 2007.
2) It outlines key stages of integration including designing an integration plan, establishing dedicated integration teams, and communicating expected synergies.
3) By mid-2008, Emirates NBD had exceeded synergy targets for the year, achieving cost savings and revenue increases through initiatives like branch consolidation and cross-selling.
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
This investor presentation discusses Safeguard Scientifics' strategy and portfolio of partner companies. It notes that Safeguard has significant cash reserves, owns stakes in 16 growing companies, and has realized $632 million in exits since 2006. However, the full value of Safeguard's holdings has yet to be realized. The presentation outlines Safeguard's goals to continue building value in current companies, make additional valuable exits, replenish holdings, and expand its platform.
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
GCC telcos are facing declining revenue growth and increased competition which is putting pressure on their margins. To address this, they need to undergo a "fitness program" to reduce costs and improve productivity through measures like operational efficiency improvements, strategic sourcing, optimizing subsidies and retention costs, prioritizing capital expenditures, and increasing workforce efficiency. An effective program involves performing an initial assessment to identify improvement opportunities, implementing targeted initiatives, and continuously monitoring metrics to ensure fitness goals are met.
George W. Buckley is the Chairman, President and CEO of 3M Company. The document provides an overview of 3M's 2008 outlook meeting, including discussions of the company's strategic focus on accelerating growth, premium returns and enhanced shareholder value. It summarizes 3M's financial performance in 2007, operational excellence initiatives, and outlook for double-digit earnings growth in 2008.
Empowering the CIO: Enabling smarter decisions with application portfolio man...IBM Rational software
Application portfolio management (APM) can help organizations optimize their IT investments by providing transparency into their application portfolio. APM analyzes applications based on their business value, costs, enhancement potential and risks to make decisions about maintenance, consolidation or modernization. Implementing APM can help reduce costs, improve business agility and align IT with business priorities. The IBM Rational solution provides capabilities for application inventory management, analytics, decision support and project execution to help customers realize the benefits of APM.
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
The document provides an overview of 3M Company's performance in 2007 and outlook for 2008 from the perspective of George Buckley, Chairman and CEO. Some key points:
- 3M overcame challenges like the sale of its pharmaceutical business but still delivered double-digit earnings growth in 2007.
- The company has a diverse portfolio of businesses that provides stability. It focuses on innovation, international expansion, and operational excellence.
- 3M expects to continue investing in growth while maintaining strong margins and returns through actions like acquisitions, supply chain optimization, and productivity gains.
Siemens Ltd is an industrial conglomerate operating in industry, energy, and healthcare sectors. Some key points:
- Revenue declined 4% in FY2009 due to exiting IT services but profits grew 16% due to higher other income
- Operations are divided into industry, energy, and healthcare with diversified revenue streams
- Acquisitions help expand product range and increase market share
- Stock has outperformed the market with 39% returns YTD compared to Nifty's 18%
IBM can provide a new dimension in computing for financial institutions. (1) Management integration, (2) Multi-platform integration, (3) Stack integration.
Textron delivered consistent growth in 1998 through leveraging existing strengths, building on past accomplishments, and focusing on a clear future vision. Key highlights included 12% revenue growth, 22% earnings per share growth, and strong financial discipline. Looking ahead, Textron is well-positioned for continued growth with a balanced mix of market-leading businesses, commitment to acquisitions and innovation, and a strong leadership team.
Citigroup 19th Annual Global Industrial Manufacturing Conferencefinance10
Pat Campbell, Sr. Vice President and CFO of 3M, presented at the Citigroup 19th Annual Global Industrial Manufacturing Conference. The presentation summarized 3M's financial results for 2005, including 5.8% sales growth to $21.2 billion and 13.6% EPS growth to $4.26. It also outlined 3M's strategy of driving growth through its technology platforms, global infrastructure, and presence in emerging markets.
The document discusses the COBIT 5 framework, which provides a comprehensive approach to governing and managing enterprise information and technology. It describes the five principles of COBIT 5, including meeting stakeholder needs, covering the enterprise end-to-end, applying a single integrated framework, enabling a holistic approach, and separating governance from management. It also outlines the seven enablers and 37 processes that make up the COBIT 5 framework. The framework is designed to help enterprises optimize value from IT investments while managing IT-related risks.
Before T2S was announced, I suggested that post-trading service providers could save and avoid duplication of costs by joining efforts in order to create a single shared platform. The proposal was to favour a technological convergence of platforms handled by the European post-trading service providers in well-identified phases of the securities value chain
This document provides an overview of PHI and its strategy for positioning itself for success in a dynamic industry. PHI's strategy is to remain a diversified regional energy delivery and competitive services company focused on value creation and operational excellence. For its power delivery utility operations, PHI's goals are to operate with excellence, achieve constructive regulatory outcomes, invest in infrastructure, and deliver at least 4% annual average earnings growth. PHI's service territory has a robust economy that is less susceptible to downturns and includes diverse government and private sectors.
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
Why Own Safeguard?
- Full Value Yet to be Realized
- Ownership Stakes in Exciting Partner Companies
- Top Performance of Proven Team
- Financial Strength, Flexibility and Liquidity
- Strong Alignment of Interests
Forward-Looking Statements
Statements contained in this presentation that are not historical facts are forward looking statements which involve certain risks and uncertainties including, but not limited to, risks associated with the uncertainty of managing rapidly changing technologies, limited access to capital, competition, the ability to attract and retain qualified employees, our ability to execute our strategy, the uncertainty of the future performance of our partner companies, acquisitions and dispositions of additional partner companies, the inability to manage growth, government regulation and legal liabilities and the effect of economic conditions in the business sectors in which our partner companies operate, negative media coverage and other uncertainties as described in our filings with the Securities and Exchange Commission, including our Annual Report on Form 10-K.
Safeguard does not assume any obligation to update any forward looking statements or other information contained in this presentation.
The document is Lockheed Martin's 1995 Annual Report. It summarizes the company's strong financial and operational performance in its first year after merging with Martin Marietta. Key points include record net earnings of $1.12 billion, excluding merger charges, and meeting over 96% of major program milestones. Lockheed Martin also captured over 60% of competitive bids pursued and maintained a $41 billion backlog. The report highlights the company positioning itself as a total systems provider across various sectors.
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
Do elements of globalization, such as Foreign Direct Investment (FDI), negatively affect the ability of countries in the Global South to preserve their culture? This research aims to answer this question by employing a cross-sectional comparative case study analysis utilizing methods of difference. Thailand and Cambodia are compared as they are in the same region and have a similar culture. The metric of difference between Thailand and Cambodia is their ability to preserve their culture. This ability is operationalized by their respective attitudes towards FDI; Thailand imposes stringent regulations and limitations on FDI while Cambodia does not hesitate to accept most FDI and imposes fewer limitations. The evidence from this study suggests that FDI from globally influential countries with high gross domestic products (GDPs) (e.g. China, U.S.) challenges the ability of countries with lower GDPs (e.g. Cambodia) to protect their culture. Furthermore, the ability, or lack thereof, of the receiving countries to protect their culture is amplified by the existence and implementation of restrictive FDI policies imposed by their governments.
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"Does Foreign Direct Investment Negatively Affect Preservation of Culture in the Global South? Case Studies in Thailand and Cambodia."
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https://www.britannica.com/event/Expo-Shanghai-2010
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A toxic combination of 15 years of low growth, and four decades of high inequality, has left Britain poorer and falling behind its peers. Productivity growth is weak and public investment is low, while wages today are no higher than they were before the financial crisis. Britain needs a new economic strategy to lift itself out of stagnation.
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2. Table of Contents
1. Executive Summary 1
2. Deal Rationale 3
3. Regulatory Concerns 7
4. Valuation of Symbion 9
5. Bid Strategy 12
6. Risks 15
7. Next Steps 17
8. Appendix
I Industry Themes 20
II Overview of Symbion 24
III Valuation 28
IV Sensitivities and Funding 34
V MergeCo Metrics 37
4. Executive Summary
Primary should wait for the ATO’s ruling in relation to Healthscope’s Revised Offer before pursuing Symbion.
Symbion remains one of the last major buying opportunities
Deal Rationale Potential to gain significant market share
Create a market leading integrated healthcare network
Valuation of Symbion Symbion has an indicative valuation range of $3.60 – $4.50
Regulatory Concerns It is unlikely that Healthscope’s Revised Offer will proceed if the ATO refuses to grant scrip-for-scrip and de-merger relief
Wait for ATO ruling
Bid Strategy If relief is not granted for Healthscope’s Revised Offer, pursue a Scheme of Arrangement offering $4.20 per share
If relief is granted for Healthscope’s Revised Offer, pursue a bear hug offering $4.50 per share
ACCC concerns over merged entity’s market share
Risks Divesting Symbion’s pharmacy and consumer businesses
Synergy realisation and integration of businesses
2
6. Why Symbion Health?
Acquiring Symbion allows Primary to increase its market share, create an integrated healthcare network and extract
significant value through synergy realisation.
Integrated network
Create one of Australia’s
largest integrated
Gain market share provider of healthcare Synergies
services
Symbion is an attractive Symbion is an industry
leader in each of its Complementary
Cross-referrals between
target and strategic fit for divisions businesses suggest
businesses
Primary efficient integration
Opportunity for Primary to
capture influential market Realisation of c$95m per
share annum in synergies
Timing
Symbion remains one of
Symbion Summary Financials (A$m) 2007A 2008F 2009F 2010F the last major buying
Revenue 3,779.2 4,164.4 4,489.8 4,753.6 opportunities
EBITDA 253.0 317.4 344.8 366.7
EPS (cents) 10.6 19.3 22.4 25.3 Investors are losing
confidence in
EBITDA Margin % 6.7% 7.6% 7.7% 7.7% Healthscope
EV/EBITDA 12.8x 10.2x 9.4x 8.9x
P/E 26.1x 22.4x 19.9x 17.6x Positive industry outlook
4
7. Synergies
Cost synergies are estimated at c$95m and are fully realised by MergeCo’s second year of operation.
Estimated cost synergies Timeline for synergy realisation
Source Details Value
Consolidate laboratory operations
and functions
Pathology $35m
Consolidate collection centres and
redeploy licences One-off
implementation
Amalgamate a limited number of cost of $20m
Medical practices
$30m
Centres
Purchasing and procurement savings MergeCo 2008F EBITDA plus business line
synergies(1)
Improve resource utilisation 400
Imaging and
$18m 350
Technology Integrate Primary’s superior IT
infrastructure 300
250
200
Synergies
Corporate Rationalise corporate functions $12m 150 2008F EBITDA
m
D
A
B
E
T
$
)
(
I
100
50
Total $95m
0
Pathology & Medical Imaging and Corporate
Centres Technology
5 (1) Excluding implementation costs
8. Divestment of Pharmacy and Consumer
The divestment of P&C for c$1.1bn will allow Primary to focus on its core healthcare operations.
Strategic
Buyer Rationale Comments
Fit
Fits with current portfolio of assets
May buy Symbion’s P&C business if ATO grants
scrip-for-scrip and de-merger relief
Willingness to commit shown by a bid of $1,043m
Potential ACCC competition restrictions
14 June 2007 offer of $1,085m for P&C
Sigma would have combined pharmaceutical
Potential to realise synergies
market share of >50%
Leading PE firm with significant holdings in major FIRB approval required as Symbion owns
healthcare companies around the world significant market share
High performing pharmaceutical distributor and Potential ACCC competition restrictions
health product retail company
Resulting market share in pharmaceutical sector of
Potential for synergies >50%
Will require an investing partner
Grocery wholesaler and distributor
Potential ACCC concern if JV with any key
Potential interest in distribution of P&C businesses
healthcare player
6
10. ATO Ruling and ACCC Concerns
It is unlikely that Healthscope’s Revised Offer will proceed if the ATO does not grant CGT relief.
ATO ruling on CGT roll-over and de-merger relief MergeCo competition analysis
De-merger Business
Roll-over Relief Market Analysis Response
Relief Segment
Total pathology market
CGT scrip-for-scrip and de-merger relief is a Divest some
Issue precondition to Healthscope’s Revised Offer
share of c40%
pathology
Pathology
collection centres
Concentration of market
as required
share in NSW
To enable Symbion
To enable Symbion
shareholders to obtain
Purpose shareholders to defer
CGT relief in relation to
their tax liability Barriers to entry high but
the de-merger
MergeCo market share
Medical No action
minimal
Centres necessary
Likely No competition issues
Uncertain Uncertain
Ruling
Health No competition issues No action
Effect on Failure to obtain CGT relief allows Primary to engage Technology arising from merger necessary
Primary Symbion at a lower price
8
12. Valuation Summary
Symbion has an indicative valuation range of $3.60 - $4.50 per share.
Enterprise Value 2008F EV/EBITDA
Valuation Measure Price per Share (A$) Low High Low High
Analyst 12 Minimum Bid
Market Valuation Month Price Price $4.20
Target $3.49
52 Week Trading Range $3.28 $4.05 2,732 3,229 8.8 x 10.4 x
Trading Comps - EV / 2008F EBITDA $3.95 $4.44 3,165 3,481 10.2 x 11.2 x
Transaction Comps - EV / LTM EBITDA $4.09 $4.50 3,255 3,520 10.5 x 11.3 x
Independent Expert's Report $3.59 $3.98
DCF Valuation
(1)
Symbion $3.60 Synergies $4.94 2,939 3,326 9.5 x 10.7 x
Indicative Bid Valuation
(2)
Analyst 12 Month Target + (20% Premium) $3.49 $4.20 2,868 3,326 9.2 x 10.7 x
(1) EV in relation to an implied price per share of $4.20
(2) Premium to average analyst 12 month price target pre-29 Jan 07
10
15. Funding Considerations
A combination of cash and scrip is attractive to all stakeholders.
Cash consideration Scrip offer
Rights Issue Debt Financing Scrip Offer
Helps facilitate a friendly transaction
Decreases dilution in voting Cheaper than raising equity
rights for Primary Opportunity for Symbion shareholders to
shareholders caused by scrip Provides for the quick
participate in the synergies
portion divestment of the P&C divisions
Advantages
Attractive to retail investors
Enables CGT roll-over relief
Certainty of consideration
Decrease in value of Primary
shares Dilutes voting rights of existing Primary
Adds pressure to MergeCo’s
shareholders
debt capacity
Risk of less than 100%
Disadvantages subscription Concession of ownership in the merged entity
Uncertainty of exchange ratio due to dependency
CGT payable on the current share price of Primary
Cash Scrip Ownership
77% 23%
Recommended: 30% rights 40% debt 30% scrip
13
16. Bidding Strategy
Response to
Heathscope’s ATO Ruling(1) Recommendation Contingency
Revised Offer
Scheme of Arrangement Off-market Hostile
Publicise SYB Board’s
Offer $4.20 per share
unwillingness to engage at
$4.20
75% threshold easier to
achieve than 90% for
Investors losing
d hostile bid
nie confidence in SYB Board
Wait and See f de Thorough due diligence
R elie possible
Healthscope most likely to
walk away
Use 20% blocking
stake to protect
Symbion
Re Bear Hug
lief Offer $4.50 per share
gr a
nt e
d SYB Board under duty to
maximise shareholder
value
Via Scheme of
Arrangement if possible
(1) Whether scrip-for-scrip and de-merger relief is available to Symbion shareholders for the Healthscope Revised Offer
14
18. Acquisition Risks
There are a number of strategies that can be employed to mitigate acquisition risks.
Situation Details Possible strategies Likelihood
Concerns regarding high
ACCC
concentration of pathology market Divest pathology assets as required
Concerns
share
Implement bear hug at $4.50 and pursue a
ATO Scrip-for-scrip and de-merger relief Scheme of Arrangement if possible
Grants available to Symbion in relation to
Relief Healthscope’s Revised Offer Symbion may have to pay Healthscope a
break fee
Use of scrip consideration reduces negative
Unable to impact of additional debt funding
No cross-divisional synergies to be
Divest P&C
derived from P&C businesses
Businesses Sell off some pathology assets to pay down
debt
Less
Uncertainty in synergy realisation
Synergies Offer via Scheme of Arrangement allows
and business integration may impact
Realised thorough due diligence to be conducted
negatively on EPS
16
20. Next Steps
Primary’s response should be framed around the ATO ruling.
Symbion can be protected by Primary’s 20% stake
If ATO refuses to grant relief for the Healthscope Revised Offer, pursue
a Scheme of Arrangement at $4.20
If ATO grants relief for Healthscope’s Revised Offer, pursue an off-
market hostile bid at $4.50
Full integration of Symbion and realisation of synergies
18
23. Industry Themes
A burgeoning healthcare industry has resulted in a strong trend towards consolidation in recent years.
Drivers of future growth Sector consolidation over the last 5 years
Consumer Greater public awareness of illness and Pharmaceuticals Symbion API Sigma Arrow
Demand the importance of a healthy lifestyle
Retail Pharmacy Symbion API Sigma
Population Growth Increasing pool of customers
Memberships increasing
Private Health Improves margins as most insurers bear Pathology Healthscope Gribbles Primary
Insurance the costs of patients
Government Recognition of aging population
Symbion Sonic Endeavour MIA CVC (PE)
Funding PBS and Medicare schemes
Ageing Increasing life expectancy ensures
Diagnostic Imaging Symbion Sonic MIA DCA
Demographics demand for health services
Scientific Advancements in providing treatment
alternatives Medical Centres Symbion Sonic Endeavour IPN Primary
Progress
21
24. Key Segments
Pathology, diagnostic imaging and medical centres are key growth segments in Australian healthcare.
Pathology Diagnostic Imaging Medical Centres
Symbion
Other IPN
2% Primary
Primary 7% 2%
3%
5%
Other DCA
St John of Sonic 33% 35%
God 38%
5%
Healthscope
10%
Key Players (1)
Other
Symbion 93%
Symbion Sonic
16%
35% 16%
Major customer bases are referring Primary source of referrals
doctors and hospitals Top 3 private operators control c67% Private GPs comprise c70% of market
of market share with large, integrated healthcare
Medicare rebates accounted for c93%
providers comprising 30%
Salient Features of total industry revenue Significant growth potential due to
aging population Projected 5-year CAGR of 2.7%
Existing Medicare Agreement caps
funding growth at 5%pa but estimated Funding structure similar to pathology Government incentives to promote the
to increase consolidation of independent practices
(1) Based on revenues
22
25. Interloper Analysis
Market
Enterprise
Interlopers Capitalisation Rationale
Value (A$m)*
(A$m)*
1,293 1,847 May submit a revised offer in response to Primary
Operates in the imaging, pathology and medical centres space
5.586 6,745
Opportunity to derive synergies for its pathology and medical imaging
business groups
Leading PE firm with significant holdings in major healthcare
companies around the world
N/A N/A
Consortium of bidders to buy key divisions such as P&C
*Data as at 25 October 2007
23
27. Symbion Share Price Chart
Symbion’s share price has steadily risen since the beginning of 2007 due in part to speculation of a
takeover.
4.60
4.40
4.20 $4.18
$4.15
$4.12
4.00 $4.05
3.80
A
P
S
$
e
a
h
c
)
(
r
i
3.60
3.40
3.20
3.00
Oct-06 Jan-07 Apr-07 Jul-07 Oct-07
Adjusted Symbion Share Price 1 month VWAP 3 month VWAP 6 month VWAP
25
28. Share Register Overview
Estimated Ownership
Retail Primary Institutions
20%
60% 20%
Substantial shareholders
Number of Shares
Holder % Ownership Comments
(m)
129.4 20.0% Strategic stake acquired in 2007
56.3 8.6% Long-term investor in Symbion
39.3 6.1% Became a substantial shareholder in August 2007
37.3 5.8% Became a substantial shareholder in September 2007
32.9 5.1% Became a substantial shareholder in August 2007
26
29. Symbion Personnel
Mr Paul McClintock
Chairman Appointed Chairman in June 2005
Over 20 years experience in Investment Banking
Age: 58
Mr Robert Cooke
Managing Director & CEO Appointed in November 2005
Over 26 years experience in senior management positions
Age: 58
Dr Ian Blackburne
Appointed in September 2004
Chair of Board’s Remuneration Committee
Formerly Managing Director of Caltex Australia
Age: 56
Appointed to the Boards of CSR, Suncorp Metaway and Teekay Corporation
Mr Jim Hall
Chair of the Board’s Audit Committee Joined the Board in June 2005
Has held senior financial management positions at BHP Billiton and Orica Limited
Age: 56
Dr Christine Bennett
Director Joined the Board in February 2007
Formerly CEO of Westmead Hospital, Partner of Health and Sciences, and has held senior positions in the
Age: 51 NSW Department of Health
27
32. Valuation Assumptions
DCF assumptions WACC calculation
Medicare rebates capped at 5% growth affecting DCF assumptions
pathology and medical imaging Risk-free Rate 6.50%
Legislative Market Risk Premium 6.00%
Rebates set to expire in FY09, but assumed to Equity Beta 0.85
remain in place Cost of Equity 11.6%
Revenue EBITDA Margin
Cost of Debt 7.50%
Pathology – 11% Slightly better than
growth FY08 FY07 numbers due to Margin -
Diagnostic imaging – cost savings and Tax Rate 30%
5% growth FY08 higher operating Pre-tax Cost of Debt 7.50%
Consumer – 10% leverage Post-tax Cost of Debt 5.25%
growth FY08
Pharmacy – 10% Target Gearing (D/E) 35.0%
Operating growth FY08 E/V 74.1%
Capex and D&A D/V 25.9%
Longer-term growth Maintenance capex
for radiology tied to D&A forecast as a
Post-tax WACC 9.95%
Medicare rebate percentage of capex
scheme merging into 100% of
Longer-term growth capex in perpetuity
for P&C tied to CPI
Financing 7.5% cost of debt
30
33. Trading Comparables
Valuation
2008F Median multiple Value
Earnings Low High Low High
311 10.2x 11.2x Enterprise Value 3,168 3,479
Plus Associates 0 0
Less Net Debt & Minorities (615) (615)
Implied Equity Value 2553 2864
Shares Outstanding 645.5 645.5
Implied Value per Share $3.95 $4.44
Average Analyst Price Target Pre-29 Jan 07 $3.49 $3.49
Premium to Average Analyst Price Target 13% 27%
List of comparables Graph
Trading Comparables EV / 2008F EBITDA 14.0x
Healthscope 9.2x 12.0x Median 10.7x
Primary 9.9x
10.0x
API 10.6x
8.0x
Symbion 10.7x
6.0x 11.8x
Sonic Healthcare 10.7x 9.9x 10.6x 10.7x 10.7x
9.2x
Sigma 11.8x 4.0x
D
A
B
V
E
T
F
8
0
2
I
/
Median 10.7x 2.0x
0.0x
Healthscope Primary API Symbion Sonic Sigma
Healthcare
31
34. Transaction Comparables
Sum of the parts List of transactions
Earnings Median multiple applied to LTM Value Pathology & Medical Centres
30-Jun-07 LTM Low High Low High Target Company Date Acquiror Enterprise Value EV / LTM EBITDA
Divisional EBITDA
QML Jun-02 Mayne Group 268 9.9x
Pathology 115 13.4x 14.4x 1,541 1,656
LabOne Aug-05 Quest 934 13.8x
Diagnostic Imaging 55 9.6x 10.6x 528 583
Consumer 39 13.4x 14.4x 523 562 Dynacare May-02 Lab Corp of America 672 14.0x
Pharmacy 52 12.8x 13.8x 666 718 IPN Jun-04 Sonic Healthcare 105 15.3x
261 Median 13.9x
Enterprise Value 3,257 3,518
Plus Associates 0 0
Imaging
Less Net Debt & Minorities (615) (615)
Implied Equity Value 2,642 2,903
Target Company Date Acquiror Enterprise Value EV / LTM EBITDA
Shares Outstanding 646 646 MIA Jun-04 DCA 934 9.6x
Implied Value per Share $4.09 $4.50 Qld Diagnostic Imaging Feb-02 Mayne Group 87 10.1x
Average analyst price target pre 29 Jan 07 $3.49 $3.49 Unilabs SA Aug-07 Capio AB 681 13.9x
Premium Over Current 17.3% 28.9%
Median 10.1x
Implied EV / LTM EBITDA 12.5x 13.5x
Valuation of pharmacy and consumer businesses Pharmacy
Target Company Date Acquiror Enterprise Value EV / LTM EBITDA
Chronimed Aug-04 Mayne Group 115 9.4x
Earnings Median multiple applied to LTM Value CCS Medical Oct-05 Sonic 630 10.5x
30-Jun-07 LTM Low High Low High Mean Accredo Feb-05 Medco Health Solutions 2,499 16.1x
Divisional EBITDA Priority healthcare Jul-05 Quest 1,341 16.7x
Consumer 39 13.4x 14.4x 523 562 542
Median 13.3x
Pharmacy 52 12.8x 13.8x 666 718 692
91
Consumer
Enterprise Value 1,188 1,279 1,234 Target Company Date Acquiror Enterprise Value EV / LTM EBITDA
Roche Consumer Health Jul-04 Bayer 2,962 12.5x
Implied EV / LTM EBITDA 13.1x 14.1x 13.6x Rexall Sundown May-00 Royal Numico 1,649 14.4x
Median 13.5x
32
35. Transaction Comparables (Cont.)
Pathology and medical centres Diagnostic imaging
16.0x 12.0x
Median 13.9x Median 10.1x
14.0x
10.0x
12.0x
8.0x
10.0x 13.9x
6.0x
8.0x 15.3x
9.6x 10.1x
13.8x 14.0x
6.0x 4.0x
M
D
A
B
V
E
T
L
M
I
/
9.9x
D
A
B
V
E
T
L
I
/
4.0x 2.0x
2.0x
0.0x
0.0x MIA QLD Diagnostic Unilabs SA
QML LabOne Dynacare IPN Imaging
Pharmacy Consumer
16.0x
20.0x Median 13.5x
14.0x
16.0x Median 13.3x 12.0x
12.0x 10.0x
8.0x 16.1x 16.7x 8.0x
14.4x
9.4x 10.5x 6.0x 12.5x
4.0x
M
D
A
B
V
E
4.0x
T
L
0.0x
M
I
/
D
A
B
V
E
T
L
I
/ 2.0x
0.0x
Roche Consumer Health Rexall Sundown
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