Financial Management ( Please see the attachment for How and what to write on this assignment paper-...

Question

Financial Management ( Please see the attachment for How and what to write on this assignment paper- Professor's Rubric).

Responses to the following should be incorporated in the case study write-up (the following also requires a fairly fulsome valuation analysis, so the appendices are likely to be more extensive than the previous cases):

· Assess Dollarama's attractiveness as an LBO candidate.

· What is Bain's strategy for Dollarama?

· What price should Bain be willing to pay (assuming a competitive process) and on what basis have you made this determination? (Hint: analyze the comparable company valuations and build an LBO model)

· What are the key drivers of value in your model (i.e., key sensitivities: sales growth, EBITDA margin, capex, exit multiple, etc.)?

Case write-ups should conform to the following guidelines, unless otherwise noted:

Cover Page:Case name, date, and team members (if a group case)
Body:Maximum of 3 pages
Exhibits:Excel exhibits should be included as appendices
Format:pdf.
Margins:Normal
Spacing:Single-spaced
Font Size:12pt

these-spreadsheet-exhibits-relate-to-the-case-h-jkel848-jaarajh0.xlsx how-the-assignmnet-paper-should-be-prepared-ie-rubric-bain-capital-and-dollarama-2xfjrcqk.docx bain-capital-and-dollarama-case-reading-vlhicbvw.pdf hj-heinz-m-a-reading-1-yu3zf53j.pdf

Tanmoy · Accepted Answer

LBO
	Illustrative LBO Model																					 
	($ in Millions)																					 
	Pro Forma Financial Statements												Transaction Value
	15%				2004A	2005E	2006E	2007E	2008E	2009E	2010E		Current Share Price									$23.00
	Revenue				$584,603	$633,646	$728,693	$837,997	$963,696	$1,108,251	$1,274,488		Premium									- -
	Total Expenses	0.86	0.86	0.86	501,293	544,654	625,601	719,441	827,357	951,460	1,094,179		Offer Price									$23.00
	EBIT				$83,310	$88,992	$103,092	$118,556	$136,340	$156,791	$180,309		Shares Outstanding									13,248
	Interest Expense				5,404	12,783	40,884	41,838	37,776	23,453	13,709		Purchase Price									$304,712
	Earnings Before Taxes				$77,906	$76,209	$62,208	$76,718	$98,563	$133,337	$166,600		Plus: Debt									1,094,571
	Taxes @		36.0%		23,807	18,659	22,395	27,619	35,483	48,001	59,976		Less: Cash									(95,224)
	Net Income				$54,099	$57,550	$39,813	$49,100	$63,081	$85,336	$106,624		Transaction Value									$1,304,059
	Plus: Depreciation & Amortization			2%	$9,280	$9,869	$10,023	$10,179	$10,337	$10,498	$10,662		2004 EBITDA									$92,590
	Change in Working Capital					5,240	6,024	7,283	9,671	12,844	17,056		EBITDA Multiple									14.1x
	Less: Capital Expenditures					10,355	12,355	12,355	12,355	12,355	12,355
	Less: Scheduled Senior Debt Paydown					(45,008)	(45,008)	(45,008)	(45,008)	(45,008)	(45,008)		Sources and Uses
	Cash Flow Available for Debt Paydown					$38,006	$23,207	$33,908	$50,436	$76,025	$101,

Financial Management ( Please see the attachment for How and what to write on this assignment paper- Professor's Rubric). Responses to the following should be incorporated in the case study write-up...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment