Suppose you are leading the team of sell side advisors of a company (Company A) in Country X that is producing chemicals in two plants (City 1 and City 2) in Country X. Following information is briefed to you by your associates.

• Company A is the market leader in Country X with a 50% market share and is debt-free
• Company A is wholly owned by Orange Holding
• Company A produces considerable raw materials for another Orange Holding Company, Orange Inc., the supply of which is vital for the production process. Orange Inc. is a giant of its sector, with 2014 sales and EBITDA of USD 1 bn and USD 200 mn, respectively
• Company A has 2014 EBITDA of USD 25 mn over sales revenues of USD 200 mn
• Plum Holding owns a smaller, yet very comparable Company B, that has EBITDA of USD 5 mn over sales of USD 100 mn. Plum Holdings Plum Inc.., another group company, is a client of Company A and is an important competitor of Orange Plc. Plum Inc. has a market capitalization of USD 50 mn and carries a net financial debt of USD 30 mn. Plum Inc.s stock is publicly traded with ample liquidity; i.e. it is safe to assume that the market cap can be considered an important proxy of the value of the company.

You have identified a wide range of potential buyers, who have finalized the analysis of Company A. They also have submitted their non-binding bids for Company A along with their comments on the SPA draft that you have made available to potential buyers. A brief description of their offers is as follows:

Potential Buyer	Non-Binding Bid (USD mn for 100% of the shares of Company A)	Strings attached to the draft SPA
Buyer 1	200	None
Buyer 2	250	Some
Buyer 3	450	Many
Buyer 4	500	Many
Buyer 5	500	Few
Buyer 6	550	Far too many
Plum Holding	600	None other than a simple non-compete agreement for five years

1. Prepare a brief one-pager for the Board of Orange Holding with your opinion on the likely buyers and recommendations
2. In the final negotiation stage, please outline which potential buyer you would eliminate and which not, with a brief rationale and necessary additional assumptions, when necessary