Jarir marketing company financial model and presentation
Budget: $250 – $750 USD
The request is to analyze a potential club-style equity investment into JARIR Marketing Company as part of a wider diversification strategy
• Your key relationship General Partner (“GP1”) has been monitoring the asset for quite some time and has been able to gauge interest from Jarir management to potentially form an equity syndicate alongside one other General Partner (“GP2”), management and Investor for a large take-private transaction
• As part of the process, your Senior Manager has asked you to provide a high-level investment analysis and form an underlying recommendation to be provided to the Investment Committee of your organization to determine commercial and strategic feasibility
• Excel based Operating Model (3-year historical; 5-year projections using your own assumptions; base and downside case model preferred)
− Please use provided equity research and industry reports to determine projections of KPIs, growth projections and underlying rationale
− Feel free to use publicly shared sources available to you but ensure you do not use any private non-public information
• Valuation Model (DCF & Trading Comps Analysis)
• Deal Structuring & LBO Model (Please embed Pro Forma IS & CF projected statements) − Please determine purchase price assumption on the basis of preceding valuation analysis and provide your own rationale on what premium to current market price would be sensible
− Take private transaction assuming 75/25 equity split between Partners/Management & PIF (view on common equity structure versus SHLs)
− Please provide your own contemplated capital structure (i.e. debt/equity split at entry including types of debt and equity instruments to support deal structure with what you think is achievable in the current market environment considering the underlying asset)
− IRR and MM sensitivity – Please sensitize returns analysis with changes in underlying KPIs
• Presentation Requirements (1 slide each for each segment) − Business and KPI overview − Investment Highlights & Risks − Qualitative view on structuring considerations/acquisition tactics and recommendation (minority vs. majority vs. full LBO) − Valuation analysis and conclusion with complementary discussion − Sources & Uses + Pro forma IS and CF statement with complementary discussion − Returns Analysis and Investment Recommendation (both from commercial & strategic viewpoint)
• Your key relationship General Partner (“GP1”) has been monitoring the asset for quite some time and has been able to gauge interest from Jarir management to potentially form an equity syndicate alongside one other General Partner (“GP2”), management and Investor for a large take-private transaction
• As part of the process, your Senior Manager has asked you to provide a high-level investment analysis and form an underlying recommendation to be provided to the Investment Committee of your organization to determine commercial and strategic feasibility
• Excel based Operating Model (3-year historical; 5-year projections using your own assumptions; base and downside case model preferred)
− Please use provided equity research and industry reports to determine projections of KPIs, growth projections and underlying rationale
− Feel free to use publicly shared sources available to you but ensure you do not use any private non-public information
• Valuation Model (DCF & Trading Comps Analysis)
• Deal Structuring & LBO Model (Please embed Pro Forma IS & CF projected statements) − Please determine purchase price assumption on the basis of preceding valuation analysis and provide your own rationale on what premium to current market price would be sensible
− Take private transaction assuming 75/25 equity split between Partners/Management & PIF (view on common equity structure versus SHLs)
− Please provide your own contemplated capital structure (i.e. debt/equity split at entry including types of debt and equity instruments to support deal structure with what you think is achievable in the current market environment considering the underlying asset)
− IRR and MM sensitivity – Please sensitize returns analysis with changes in underlying KPIs
• Presentation Requirements (1 slide each for each segment) − Business and KPI overview − Investment Highlights & Risks − Qualitative view on structuring considerations/acquisition tactics and recommendation (minority vs. majority vs. full LBO) − Valuation analysis and conclusion with complementary discussion − Sources & Uses + Pro forma IS and CF statement with complementary discussion − Returns Analysis and Investment Recommendation (both from commercial & strategic viewpoint)