LBO Analysis Template

(1)

Investment Banking

Valuation, Leveraged Buyouts,

and Mergers & Acquisitions

LBO Analysis - Template

JOSHUA ROSENBAUM

JOSHUA PEARL

(2)

gvValueCo Corporation

Leveraged Buyout Analysis Financing Structure: Structure 1

($ in millions, fiscal year ending December 31) Operating Scenario: Base

Sources of Funds Uses of Funds Purchase Price Return Analysis

% of Total Multiple of EBITDA % of Total Offer Price per Share - Exit Year 2013

Amount Sources 9/30/2008 Cumulative Pricing Amount Uses Fully Diluted Shares - Entry Multiple - x

Revolving Credit Facility - - % - x - x NA Purchase ValueCo Equity - - % Equity Purchase Price - Exit Multiple - x

Term Loan A - - % Term Loan B - - % Term Loan C - - % 2nd Lien - - % Senior Notes - - % Senior Subordinated Notes Equity Contribution Rollover Equity - - % Cash on Hand - - % Total Sources Projection Period LTM Pro 2005 2006 Sales % growth NA -Gross Profit % margin -EBITDA % margin -Capital Expenditures - % sales -Cash Interest Expense - -Total Interest Expense - -Free Cash Flow EBITDA - -Less: Cash Interest Expense -Plus: Interest Income - -Less: Income Taxes - -Less: Capital Expenditures -Less: Increase Free Cash Flow Cumulative Free Cash Flow -Cash - -Revolving Credit Facility -Term Loan A - -Term Loan B - -Term Loan C - -Existing Term Loan - -2nd Lien - -Other Debt - Total Senior -Senior Notes - Total Senior Debt -Senior Subordinated Notes Total Debt -Shareholders' Equity - Total Capitalization % of Bank Debt Repaid -% Debt / Total -EBITDA / Cash Interest Expense - x - x NA Repay Existing Debt - - % Plus: Existing Net Debt - IRR NA - x - x NA Tender / Call Premiums - - % Enterprise Value - Cash Return NM - x - x NA Financing Fees - - % - x - x NA Other Fees and Expenses - - % Transaction Multiples Options - x - x NA Enterprise Value / Sales Financing Structure 1 - - % - x - x NA LTM 9/30/2008 - - x Operating Scenario 1 - - % - x - x 2008E - - x Cash Flow Sweep 1 - x - x Enterprise Value / EBITDA Cash Balance 1 - x - x LTM 9/30/2008 - - x Average Interest 1 - - % - x - x Total Uses - - % 2008E - - x Financing Fees 1 forma Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 2007 9/30/2008 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 - - - - - - - - - - - - - - - - NA - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - in Net Working Capital - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Secured Debt - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - Capitalization - - - - - - - - - - - x - x - x - x - x - x - x - x - x - x - x

(EBITDA - Capex) / Cash Interest Expense - x - x - x - x - x - x - x - x - x - x - x

EBITDA / Total Interest Expense - x - x - x - x - x - x - x - x - x - x - x

(EBITDA - Capex) / Total Interest Expense - x - x - x - x - x - x - x - x - x - x - x

Senior Secured Debt / EBITDA - x - x - x - x - x - x - x - x - x - x - x

Senior Debt / EBITDA - x - x - x - x - x - x - x - x - x - x - x

Total Debt / EBITDA - x - x - x - x - x - x - x - x - x - x - x Net Debt / EBITDA NM NM NM NM NM NM NM NM NM NM NM Transaction Summary

Historical Period

Capitalization

Credit Statistics Summary Financial Data

(3)

($ in millions, fiscal year ending December 31)

Historical Period Projection Period

LTM Pro forma Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2005 2006 2007 9/30/2008 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Sales - - - - - - - - - - - - - -

% growth NA - - NA - - - - - - - - - - -Cost of Goods Sold - - -

-Gross Profit - - - - - - - - - - - - - -

% margin - - - - - - - - - - - - - - -Selling, General & Administrative - - - % sales - - - - - - - - - - - - - - -Other Expense / (Income) - - -

-EBITDA - - - - - - - - - - - - - -

% margin - - - - - - - - - - - - - - -Depreciation & Amortization - - -

-EBIT - - - - - - - - - - - - - -

% margin - - - - - - - - - - - - - - -Interest Expense

Revolving Credit Facility - - -

-Term Loan A - - -

-Term Loan B - - -

-Term Loan C - - -

-Existing Term Loan - - -

-2nd Lien - - -

-Senior Notes - - -

-Senior Subordinated Notes - - -

-Commitment Fee on Unused Revolver - - -

-Administrative Agent Fee - - -

Cash Interest Expense - - - - - - - - - -

-Amortization of Deferred Financing Fees - - -

Total Interest Expense - - - - - - - - - -

-Interest Income - - -

Net Interest Expense - - - - - - - - - -Earnings Before Taxes - - -

-Income Tax Expense - - -

Net Income - - - - - - - - -

% margin - - - - - - - - - -Income Statement Assumptions

Sales (% YoY growth) NA - % - % NA - % - % - % - % - % - % - % - % - % - % - % Cost of Goods Sold (% margin) - % - % - % - % - % - % - % - % - % - % - % - % - % - % - % SG&A (% sales) - % - % - % - % - % - % - % - % - % - % - % - % - % - % - % Other Expense / (Income) (% of sales) - % - % - % - % - % - % - % - % - % - % - % - % - % - % - % Depreciation & Amortization (% of sales) - % - % - % - % - % - % - % - % - % - % - % - % - % - % - %

Interest Income - % - % - % - % - % - % - % - % - % - % - %

Tax Rate - % - % - % - % - % - % - % - % - % - %

(4)

Projection Period

Opening Adjustments Pro Forma Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2008 + - 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Cash and Cash Equivalents - - - -Accounts Receivable - - - -Inventories - - - -Prepaids and Other Current Assets - - - Total Current Assets - - - - - - - - - - - -Property, Plant and Equipment, net - - - -Goodwill and Intangible Assets - - - -Other Assets - - - -Deferred Financing Fees - - - Total Assets - - - - - - - - - - - -Accounts Payable - - - -Accrued Liabilities - - - -Other Current Liabilities - - - Total Current Liabilities - - - - - - - - - - - -Revolving Credit Facility - - - -Term Loan A - - - -Term Loan B - - - -Term Loan C - - - -Existing Term Loan - - - -2nd Lien - - - -Senior Notes - - - -Senior Subordinated Notes - - - -Other Debt - - - -Other Long-Term Liabilities - - - Total Liabilities - - - - - - - - - - - -Noncontrolling Interest - - - -Shareholders' Equity - - - Total Shareholders' Equity - - - - - - - - - - - Total Liabilities and Equity - - - - - - - - - - -

-Balance Check 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

Net Working Capital - - - -(Increase) / Decrease in Net Working Capital - - -

-Balance Sheet Assumptions

Days Sales Outstanding (DSO) - - - -Days Inventory Held (DIH) - - - -Prepaid and Other Current Assets (% of sales) - % - % - % - % - % - % - % - % - % - % - % - %

Days Payable Outstanding (DPO) - - - -Accrued Liabilities (% of sales) - % - % - % - % - % - % - % - % - % - % - % - % Other Current Liabilities (% of sales) - % - % - % - % - % - % - % - % - % - % - % - % Balance Sheet

Current Assets

(5)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Operating Activities

Net Income - - -

Plus: Depreciation & Amortization - - -

Plus: Amortization of Financing Fees - - -

Changes in Working Capital Items

(Inc.) / Dec. in Accounts Receivable - - -

(Inc.) / Dec. in Inventories - - -

(Inc.) / Dec. in Prepaid and Other Current Assets - - -

Inc. / (Dec.) in Accounts Payable - - -

Inc. / (Dec.) in Accrued Liabilities - - -

Inc. / (Dec.) in Other Current Liabilities - - -

(Inc.) / Dec. in Net Working Capital - - -

Cash Flow from Operating Activities - - - - - - - - -

-Investing Activities

Capital Expenditures - - -

Other Investing Activities - - -

Cash Flow from Investing Activities - - - - - - - - -

-Financing Activities

Revolving Credit Facility - - -

Term Loan A - - -

Term Loan B - - -

Term Loan C - - -

Existing Term Loan - - -

2nd Lien - - -

Senior Notes - - -

Senior Subordinated Notes - - -

Other Debt - - -

Dividends - - -

Equity Issuance / (Repurchase) - - -

Cash Flow from Financing Activities - - - - - - - - -

Excess Cash for the Period - - -

Beginning Cash Balance - - -

Ending Cash Balance - - - - - - - - -

-Cash Flow Statement Assumptions

Capital Expenditures (% of sales) - % - % - % - % - % - % - % - % - % - %

(6)

Pro forma Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Forward LIBOR Curve - % - % - % - % - % - % - % - % - % - % - %

Cash Flow from Operating Activities - - - -Cash Flow from Investing Activities - - - Cash Available for Debt Repayment - - - - - - - - - -Total Mandatory Repayments MinCash - - - -Cash From Balance Sheet - - - Cash Available for Optional Debt Repayment - - - - - - - - -

-Revolving Credit Facility

Revolving Credit Facility Size

-Spread - %

Term 0 years

Commitment Fee on Unused Portion - %

Beginning Balance - - - -Drawdown/(Repayment) - - - Ending Balance - - - - - - - - - -Interest Rate - - - - - - - - -

-Average Interest Expense - - - -Commitment Fee - - -

-Term Loan B Facility

Size

-Spread - %

Term 0 years

Repayment Schedule - % Per Annum, Bullet at Maturity

Beginning Balance - - - -Mandatory Repayments - - - -Optional Repayments - - - Ending Balance - - - - - - - - - -Interest Rate - - - - - - - - - -Interest Expense - - -

-Senior Subordinated Notes

Size -Coupon - % Term 0 years Beginning Balance - - - -Repayment - - - Ending Balance - - - - - - - - - -Interest Expense - - - -Debt Schedule

(7)

Pro forma Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Entry EBITDA Multiple - x

Initial Equity Investment

EBITDA - - - -Exit EBITDA Multiple - x

Enterprise Value at Exit - - - - - - - - - -Less: Net Debt

Revolving Credit Facility - - - -Term Loan A - - - -Term Loan B - - - -Term Loan C - - - -Existing Term Loan - - - -2nd Lien - - - -Senior Notes - - - -Senior Subordinated Notes - - - -Other Debt - - - Total Debt - - - - - - - - - -Less: Cash and Cash Equivalents - - - Net Debt - - - - - - - - - Equity Value at Exit - - - - - - - - -

-Cash Return NM NM NM NM NM NM NM NM NM NM

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Initial Equity Investment - - - -Equity Proceeds - - - - - - - - - - - - - - - - - - - - - - IRR NA NA NA NA NA NA NA NA NA NA

IRR - Assuming Exit in 2013E IRR - Assuming 0.0x Entry Multiple

Exit Multiple Exit Year

NA -1.0x -0.5x 0.0x 0.5x 1.0x -2 -1 0 1 2 -1.0x NA NA NA NA NA 6.5x NA NA NA NA NA Entry -0.5x NA NA NA NA NA Exit 7.0x NA NA NA NA NA Multiple 0.0x NA NA NA NA NA Multiple 7.5x NA NA NA NA NA 0.5x NA NA NA NA NA 8.0x NA NA NA NA NA 1.0x NA NA NA NA NA 8.5x NA NA NA NA NA Returns Analysis

(8)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Income Statement Assumptions

Sales (% growth) - % - % - % - % - % - - - - Base 1 - % - % - % - % - % - - - - Sponsor 2 - % - % - % - % - % - - - - Management 3 - % - % - % - % - % - - - - Downside 1 4 - % - % - % - % - % - - - - Downside 2 5 - % - % - % - % - % - - - -

-Cost of Goods Sold (% sales) - % - % - % - % - % - - - -

Base 1 - % - % - % - % - % - - - - Sponsor 2 - % - % - % - % - % - - - - Management 3 - % - % - % - % - % - - - - Downside 1 4 - % - % - % - % - % - - - - Downside 2 5 - % - % - % - % - % - - - - -SG&A (% sales) - % - % - % - % - % - - - - Base 1 - % - % - % - % - % - - - - Sponsor 2 - % - % - % - % - % - - - - Management 3 - % - % - % - % - % - - - - Downside 1 4 - % - % - % - % - % - - - - Downside 2 5 - % - % - % - % - % - - - -

-Depreciation & Amortization (% sales) - % - % - % - % - % - - - -

Base 1 - % - % - % - % - % - - - - Sponsor 2 - % - % - % - % - % - - - - Management 3 - % - % - % - % - % - - - - Downside 1 4 - % - % - % - % - % - - - - Downside 2 5 - % - % - % - % - % - - - - -Interest Income - % - % - % - % - % - - - - Base 1 - % - % - % - % - % - - - - Sponsor 2 - % - % - % - % - % - - - - Management 3 - % - % - % - % - % - - - - Downside 1 4 - % - % - % - % - % - - - - Downside 2 5 - % - % - % - % - % - - - -

-Cash Flow Statement Assumptions

Capital Expenditures (% sales) - % - % - % - % - % - - - -

Base 1 - % - % - % - % - % - - - -

Sponsor 2 - % - % - % - % - % - - - -

Management 3 - % - % - % - % - % - - - -

Downside 1 4 - % - % - % - % - % - - - -

Downside 2 5 - % - % - % - % - % - - - -

(9)

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Current Assets

Days Sales Outstanding (DSO) - - -

Base 1 - - -

Sponsor 2 - - -

Management 3 - - -

Downside 1 4 - - -

Downside 2 5 - - -

-Days Inventory Held (DIH) - - -

Base 1 - - -

Sponsor 2 - - -

Management 3 - - -

Downside 1 4 - - -

Downside 2 5 - - -

-Prepaids and Other Current Assets (% sales) - % - % - % - % - % - - - -

Base 1 - % - % - % - % - % - - - - Sponsor 2 - % - % - % - % - % - - - - Management 3 - % - % - % - % - % - - - - Downside 1 4 - % - % - % - % - % - - - - Downside 2 5 - % - % - % - % - % - - - - -Current Liabilities

Days Payable Outstanding (DPO) - - -

Base 1 - - -

Sponsor 2 - - -

Management 3 - - -

Downside 1 4 - - -

Downside 2 5 - - -

-Accrued Liabilities (% sales) - % - % - % - % - % - - - -

Base 1 - % - % - % - % - % - - - -

Sponsor 2 - % - % - % - % - % - - - -

Management 3 - % - % - % - % - % - - - -

Downside 1 4 - % - % - % - % - % - - - -

Downside 2 5 - % - % - % - % - % - - - -

-Other Current Liabilities (% sales) - % - % - % - % - % - - - -

Base 1 - % - % - % - % - % - - - -

Sponsor 2 - % - % - % - % - % - - - -

Management 3 - % - % - % - % - % - - - -

Downside 1 4 - % - % - % - % - % - - - -

Downside 2 5 - % - % - % - % - % - - - -

(10)

($ in millions)

Structure Public / Private Target 2

1 2 3 4 5

Structure 1 Structure 2 Structure 3 Structure 4 Status Quo Entry EBITDA Multiple - x Revolving Credit Facility Size - - - - - LTM 9/30/2008 EBITDA -Revolving Credit Facility Draw - - - - - Enterprise Value -Term Loan A - - - -

-Term Loan B - - - - - Less: Total Debt -Term Loan C - - - - - Less: Preferred Securities

-2nd Lien - - - - - Less: Noncontrolling Interest -Senior Notes - - - - - Plus: Cash and Cash Equivalents -Senior Subordinated Notes - - - - - Equity Purchase Price -Equity Contribution - - - -

-Rollover Equity - - - -

-Cash on Hand - - - -

- - - - Offer Price per Share

Total Sources of Funds - - - -

-Basic Shares Outstanding

-Plus: Shares from In-the-Money Options -Equity Purchase Price - - - - - Less: Shares Repurchased -Repay Existing Bank Debt - - - - - Net New Shares from Options -Tender / Call Premiums - - - - - Plus: Shares from Convertible Securities -Financing Fees - - - - - Fully Diluted Shares Outstanding -Other Fees and Expenses - - - -

- - -

- - - - Number of Exercise In-the-Money

- - - - Tranche Shares Price Shares Proceeds Total Uses of Funds - - - - - Tranche 1 - - -

-Tranche 2 - - - -Tranche 3 - - - -Tranche 4 - - - -Structure 1 Size (%) ($) Tranche 5 - - - -Revolving Credit Facility Size - - - Total - - -Term Loan A - -

-Term Loan B - -

-Term Loan C - - - Conversion Conversion New 2nd Lien - - - Amount Price Ratio Shares Senior Notes - - - Issue 1 - - - -Senior Subordinated Notes - - - Issue 2 - - - -Senior Bridge Facility - - - Issue 3 - - - -Senior Subordinated Bridge Facility - - - Issue 4 - - - -Other Financing Fees & Expenses - Issue 5 - - -

Total Financing Fees - Total

-Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10

Term 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Revolving Credit Facility Size - - - -Term Loan A - - - -Term Loan B - - - -Term Loan C - - - -2nd Lien - - - -Senior Notes - - - -Senior Subordinated Notes - - - -Senior Bridge Facility - - - -Senior Subordinated Bridge Facility - - - -Other Financing Fees & Expenses - - - Annual Amortization - - - - - - - - - Administrative Agent Fee - - - - - - - - -

-Amortization of Financing Fees Financing Fees

Convertible Securities Fees

Assumptions Page 3 - Financing Structures and Fees

Options/Warrants

Purchase Price

Calculation of Fully Diluted Shares Outstanding

Sources of Funds

Uses of Funds

(11)

Published simultaneously in Canada.

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Library of Congress Cataloging-in-Publication Data:

ISBN-13 978-0-470-44220-3

Printed in the United States of America 10 9 8 7 6 5 4 3 2 1