Prior to finishing the final offer, Simpson's M&A team has a discussion with NPV Advisory. You were asked to provide a combined valuation for the new company based on the information below. 1) What is the expected valuation of the Combined Company based on EBITDA ignoring all the discounts and premiums? 2) If the offer price by the Simpsons was $165M for 100% of equity, what is the upside for the buyer in dollars and as a percentage if the new company will be valued at an international EV/EBITDA ratio of 6?

Prior to finishing the final offer, Simpson's M&A team has a discussion with NPV Advisory. You were asked to provide a combined valuation for the new company based on the information below. ? Table 1. Simpsons stores local 2017A 2018A 2019F Sales (2 locations) 6.00 10.00 17.00 -4.20 -11.50 Operating costs Operating Income -6.60 3.40 1.80 5.50 Depreciation and Amortization 1.00 1.20 1.50 ? ? ? EBITDA Net debt of the company 20.00 ? Table 2. RaTrade 2017A 2018A 2019F Sales (20 locations) 120.00 134.00 145.00 Operating costs Operating Income -90.00 30.00 -104.50 29.50 -111.70 33.30 Depreciation and amortization 5.00 4.50 6.00 ? ? ? EBITDA Net debt of the company 56.00 1) What is the expected valuation of the Combined Company based on EBITDA ignoring all the discounts and premiums? 2) If the offer price by the Simpsons was $165M for 100% of equity, what is the upside for the buyer in dollars and as a percentage, if the new company will be valued at an international EV/EBITDA ratio of 6? Prior to finishing the final offer, Simpson's M&A team has a discussion with NPV Advisory. You were asked to provide a combined valuation for the new company based on the information below. ? Table 1. Simpsons stores local 2017A 2018A 2019F Sales (2 locations) 6.00 10.00 17.00 -4.20 -11.50 Operating costs Operating Income -6.60 3.40 1.80 5.50 Depreciation and Amortization 1.00 1.20 1.50 ? ? ? EBITDA Net debt of the company 20.00 ? Table 2. RaTrade 2017A 2018A 2019F Sales (20 locations) 120.00 134.00 145.00 Operating costs Operating Income -90.00 30.00 -104.50 29.50 -111.70 33.30 Depreciation and amortization 5.00 4.50 6.00 ? ? ? EBITDA Net debt of the company 56.00 1) What is the expected valuation of the Combined Company based on EBITDA ignoring all the discounts and premiums? 2) If the offer price by the Simpsons was $165M for 100% of equity, what is the upside for the buyer in dollars and as a percentage, if the new company will be valued at an international EV/EBITDA ratio of 6