Model Inputs and Assumptions General Assumptions Forecast Scenario Transaction Date Fiscal Year-End Days Per Year 01-08-2021 31-12-2021 365 Current Capitalization Cash-on-Hand $5,000 PP&E $60,000 Total Debt $35,000 Total Equity $1,00,000 Valuation Assumptions Tax Rate Perpetual Growth Rate EBITDA Exit Multiple Risk-Free Rate Equity Risk Premium Interest Rate Investment Amount 28% 2% 8.5x 3% 5% 4% $1,05,000 Income Statement Sales Revenue Cost of Sales Gross Profit SG&A Expense 2021E 2022E 2023E 2024E 2025E 2026E 2027E 2028E 2029E 2030E $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Depreciation Expense Interest Expense Income Before Income Taxes $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Income Taxes Net Income $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Balance Sheet Items PP&E Schedule PP&E, Opening Balance Capital Expenditures Depreciation Expense PP&E, Ending Balance Debt Schedule Total Debt, Opening Balance Issuance (Repayment) Total Debt, Ending Balance Interest Expense Equity Schedule Total Equity, Opening Balance Net Income Dividends Share Issuance (Buy-Back) Total Equity, Ending Balance $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 Comparable Companies Beta Levered Unlevered Company Beta Debt Equity Debt/Equity Tax Rate Beta Company A 1.45 $567 $1,265 36% Company B 0.92 $634 $914 29% Company C 1.26 $321 $1,298 30% Company D 1.03 $437 $1,021 32% Company E 0.88 $539 $1,388 31% Median Comparable Trading Metrics Market Data Financial Data (2021E) Valuation (2021E) Company Name Price Market Cap Net Debt EV Sales EBITDA Earnings [$/sh.] [S] [S] [S] [S] [S] S EV/Sales [x] EV/EBITDA P/E X Company A $58.23 $1,68,041 ($2,719) $1,65,322 $58,887 $16,523 $7,381 Company B $71,54 $1,23,883 ($7,920) $1,15,963 $56,415 $11,324 $5,618 Company C $66.21 $10,326 $5,301 $15,627 $4,569 $1,515 $520 Company D $45.68 $11,618 $5,385 $17,003 $5,512 $1,725 $487 Company E $26.78 $964 $42 $1,006 $386 $97 $41 Median Comparable Trading Metrics Company Name Transaction Value Net Debt Financial Data EBITDA Earnings Transaction Multiples EBITDA Earnings [S] S [$] [S] [x] [x] Transaction 1 Transaction 2 Transaction 3 $1,50,000 $15,669 $17,654 $8,231 $2,00,000 $35,263 $15,345 $7,917 $80,000 $11,247 $6,589 $3,567 Transaction 4 Transaction 5 Median $1,10,000 $14,884 $11,256 $5,623 $96,000 $5,623 $9,932 $5,188 Sales Revenue Cost of Sales $36,000 $40,450 SG&A Expense Depreciation Expense $38,160 $48,176 $51,067 ($21,600) ($22,896) ($24,270) ($25,726) ($27,270) ($28,906) ($30,640) ($5,400) ($5,724) ($6,067) ($6,431) ($6,817) ($7,226) ($7,660) ($3,600) ($3,816) ($4,045) ($4,288) ($4,545) ($4,818) ($5,107) $42,877 $45,449 ($8,120) ($8,607) ($5,413) ($5,738) $54,131 $60,821 ($32,478) ($34,427) ($36,493) ($9,123) ($6,082) $57,379 Other Assumptions Change in Non-Cash Working Capital ($720) ($763) ($809) ($858) ($909) ($964) ($1,021) ($1,083) ($1,148) ($1,216) Capital Expenditures $5,000 $5,075 $5,151 $5,228 $5,307 $5,386 $5,467 $5,549 $5,632 $5,717 Debt Issuance (Repayment) $0! $0 $0: $0 ($3,000) ($3,000) so $0 $0! ($2,000) Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 Share Issuance (Buy-Back) $0 soi $0 $0 $0 $0 $0 $0 $0 $0 Low Case Income Statement Assumptions Sales Revenue $36,000 Cost of Sales ($24,480) $36,900 ($25,092) ($25,719) $37,823 $38,768 ($26,362) SG&A Expense ($7,200) ($7,380) ($7,565) ($7,754) $39,737 ($27,021) ($7,947) Depreciation Expense ($3,600) ($3,690) ($3,782) ($3,877) ($3,974) $40,731 $41,749 ($27,697) ($28,389) ($8,146) ($8,350) ($4,073) ($4,175) $42,793 $43,863 $44,959 ($29,099) ($29,827) ($30,572) ($8,559) ($8,773) ($8,992) ($4,279) ($4,386) ($4,496) Other Assumptions Change in Non-Cash Working Capital ($720) ($738) ($756) ($775) ($795) ($815) ($835) ($856) ($877) ($899) Capital Expenditures $5,000 $5,075 $5,151 $5,228 $5,307 $5,386 $5,467 $5,549 $5,632 $5,717 Debt Issuance (Repayment) $0 $0 ($3,000) ($3,000) $0 $0 ($2,000) Dividends $0 $0 so $0 $0 $0 $0 $0 $0 so! Share Issuance (Buy-Back) $0 $0 so! $0 $0 so! $0 $0 $0 High Case Income Statement Assumptions Sales Revenue $36,000 Cost of Sales ($20,160) SG&A Expense ($3,600) ($3,942) $39,420 $43,165 ($22,075) ($24,172) ($4,316) $47,266 ($26,469) $51,756 ($28,983) ($4,727) ($5,176) $56,673 $62,056 ($31,737) ($34,752) ($5,667) ($6,206) $67,952 ($38,053) ($6,795) $74,407 ($41,668) $81,476 ($45,627) ($7,441) ($8,148) Depreciation Expense ($3,600) ($3,942) ($4,316) ($4,727) ($5,176) ($5,667) ($6,206) ($6,795) ($7,441) ($8,148) Other Assumptions Change in Non-Cash Working Capital ($720) ($788) ($863) ($945) ($1,035) ($1,133) ($1,241) ($1,359) ($1,488) ($1,630) Capital Expenditures $5,000 $5,075 $5,151 $5,228 $5,307 $5,386 $5,467 $5,549 $5,632 $5,717 Debt Issuance (Repayment) $0: $0 $0! $0 ($3,000) ($3,000): $0 $0 $0: ($2,000) Dividends $0 so! $0 $0 $0 $0 $0 so $0 $0 Share Issuance (Buy-Back) $0! $0 $0 $0 $0 $0 so! $0 $0! $0