active_generation_valuation

active_generation_valuation - Net Gains from Synergy: SBC...

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2005 2006 2007 2008 2009 2010 2011 2012 Bottom Line Cost savings 0.2 0.3 0.4 0.6 0.6 0.6 0.6 Staff savings 0.1 0.2 0.3 0.4 0.4 0.4 Sales team 0.5 1 1.6 1.6 1.6 1.6 Networks 0.25 0.5 1 1 1 1 Severance costs -2 Top Line Gains 0.38 0.38 0.38 0.38 0.38 0.38 Annual gains -1.8 1.53 2.48 3.88 3.98 3.98 3.98 Terminal value 49.69 Present value -1.67 1.31 1.96 2.85 2.71 2.5 31.31 Sum 40.98 Assumptions Growth after 2012 0% WACC 8%
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Asset-Based Page 2 ACTIVE GENERATION INC, VALUATION ASSET-BASED (STATIC) VALUATION ASSUMPTIONS Fixed Asset Appraisal Replacement Value $2,658,600 Liquidation Value $1,649,800 Working Capital, Net $9,246,000 Book Value $13,646,000 METHODS Book Value $13,646,000 Replacement Value Working Capital $9,246,000 Fixed Assets -- Replacement $2,658,600 Total $11,904,600 Liquidation Value Working Capital $9,246,000 Fixed Assets -- Liquidation $1,649,800 Total $10,895,800
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ACTIVE GENERATION INC, VALUATION VALUATION BASED ON COMPARABLES ASSUMPTIONS Comparable Company Ratios Market/Book Ratio -- KHC 1.3 Price/Earnings Ratio -- KHC 12.6 Book Value $13,646,000 2003 Sales -- AGI $44,000,000 Sales Growth Rate -- AGI As-Is 8.0% Post Acquisition 11.0% Operating Income Margin -- AGI As-Is 7.0% Post Acquisition 7.8% Tax Rate -- AGI 28.0% Post INCOME PROJECTIONS -- 2004 As Is Acquisition 2004 Sales $47,520,000 $48,840,000 Operating Income $3,326,400 $3,809,520 Less Taxes ($931,392) ($1,066,666) 2004 Net Income $2,395,008 $2,742,854 COMPARABLES VALUATION METHODS Book Value $13,646,000 Peers Multiple 1.3 x Comparables Valuation $17,739,800 2004 Net Income -- As Is $2,395,008 Peers Multiple 12.6 x Comparables Valuation $30,177,101 2004 Net Income -- Post Acquisition $2,742,854 Peers Multiple 12.6 x Comparables Valuation $34,559,965
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active_generation_valuation - Net Gains from Synergy: SBC...

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