Land Mark Facility Solutions

1. Why is Harris acquiring Landmark? What are the sources of synergies? Do you believe these synergies can be realistically achieved?

2. What is the appropriate discount rate for valuing the acquisition?

3. Derive the pro-forma free cash flows of Landmark and Broadway and

value both companies after the acquisition.

4. What is the value of this acquisition to Broadway, under both

expected and pessimistic scenarios? Should Harris proceed with his

$120 ml bid?

5. Which financing alternative should Harris choose? What are the

implications of the chosen financing method for Broadways capital structure? Can Harris afford the debt service? How much in equity in the new firm does Harris give up by opting for the mix of debt and equity financing alternative?