Please do not submit a bid for this project without reading the following instructions and posting relevant work samples.
We need an expert in US GAAP public statements, who is strong in excel and familiar with Capital IQ and has MBA quality valuation skills. The project involves spreading financial numbers over last 10 quarters from the source documents, carefully reading the footnotes, adjusting the numbers for all non cash and one time charges, calculating Total enterprise value and adjusted EBITDA multiples based on fully diluted share count using the treasury method, and then doing basic valuation analysis including comparable company and precedent transaction analysis.
There will be very basic or no forecasting beyond guidance given in the transcript. If its not clear -we would expect no projections. We have a standard model and is accompanied by specific instruction steps (see below). We focus on accuracy vs. false [url removed, login to view] must read the footnotes and footnote all sources and assumptions.
The assignment is broken down into 2 parts to be delivered seqentially. The first part is purely on the quantitative portion (steps 1-4).
The 2nd part includes qualitative, but with a defined format (See Step 5) as well as actual valuation work. An example will be provided. We are not expecting in substantial primary research beyond the public documents and analyst research (which we will provide)-but the higher the quality the more assignments we will make available.
If we work well together you can assume we will be regularly sending you additional companies for review
PLease submit relevant examples of quantitative and qualitative work product.
Active Owners Fund Master Template Instructions
1. OP Model Tab
- Spread numbers of target company (i.e. historical and projected revenue by segment, revenue drivers / metrics, last 3 years and last 8 quarters, from revenue down to Net Income )
- EBITDA calculation - add back non-cash charges (i.e. SBC expense), 1x charges (i.e. restructuring, compensation, insurance, etc..) and show pro forma EBITDA
- Also show PF EBITDA - Capex
- Show y-o-y change in revs by segment as well as q-o-q sequential changes
- Show Margin analysis - gross margin, op margin, EBITDA margin, Net Income margin, etc...
- Show Op expense ratios - SG&A as % of sales, R&D as % of sales, etc...
FOOTNOTE ALL SOURCES AND ASSUMPTIONS IN GREAT DETAIL
2. Projections Tab
- illustrate your basic assumptions on your projections in order for us to be able to follow your logic
3. Master Tab Part I
- TEV Calculation -
a) determine latest common shares outstanding
b) determine if there are class b shares / units outstanding
c) Treasury Stock Method for option dilution (located outside of print area in cell T26)
d) RSU's & RSA's outstanding
e) fully diluted shares * share px = equity value
f) Less Cash + Debt + Min Interest / Pref Stock
- Update LTM Rev, EBITDA, EBITDA-Capex and show LTM Trading multiples, Run-Rate (seasonally adjusted), and NTM multiples
- Seasonality Adjustment - Tab labled "INC Quart" can be used to seasonally adjust latest Run-rate depending on Quarter
4. Comps Tab
- Lay out relevant comps using CapIQ "Quick Comps"for competitors (re-evaluate comps) but use your scrubbed numbers for target company
- Lay out Street expectations vs. AOF expectations to show divergence
- "M&A Comps Tab" - layout precedent M&A Comps
5. Master Tab Part II
- Qualitatitive description - thesis, risks / mitigants, value proposition, company history, business overview, market overview, comp advantages, recent transactions, market share over time (losing or gaining share?), customer concentration, competitor profiles, etc...
- we have included an example of some qualitative work we have performed on AH .
6. Calculations Tab / Earnings Power Value
- Top section allows you to view op margin %, D&A%, SBC%, Tax Rate% over various historical periods; however, we would like to input
assumptions in Column G and