DRAFT FOR DISCUSSION

05/13/2025

All figures are in $000's

Income Statement 2011 2012 2013 2014 2015

Revenue 68,502.0 71,927.1 75,523.5 78,544.4 81,686.2

% Growth Rate 5.0% 5.0% 4.0% 4.0%

Cost of goods sold 51,719.0 54,664.6 58,153.1 61,264.6 64,123.6

75.5% 76.0% 77.0% 78.0% 78.5%

Gross Margin 16,783.0 17,262.5 17,370.4 17,279.8 17,562.5

Gross Margin 24.5% 24.0% 23.0% 22.0% 21.5%

Operating Expenses
Selling Expenses 2,750.0 2,868.0 2,875.0 3,570.0 3,250.0
Admin & Other Expenses 5,805.0 5,900.0 5,802.0 6,120.0 6,054.0
Rent & Maintenance 1,350.0 1,357.0 1,350.0 1,380.0 1,390.0
Total Operating Expenses 9,905.0 10,125.0 10,027.0 11,070.0 10,694.0
% of Sales 14.5% 14.1% 13.3% 14.1% 13.1%

EBITDA 6,878.0 7,137.5 7,343.4 6,209.8 6,868.5

EBITDA Margin 10.0% 9.9% 9.7% 7.9% 8.4%

Depreciation 1,225.0 1,141.5 1,062.4 1,141.1 1,126.0

Interest Expense 810.0 810.0 810.0 810.0 810.0

EBT 4,843.0 5,186.0 5,471.0 4,258.7 4,932.5

Tax 1,210.7 1,296.5 1,367.8 1,064.7 1,233.1

Net Income 3,632.2 3,889.5 4,103.3 3,194.0 3,699.4

Net Margin 5.3% 5.4% 5.4% 4.1% 4.5%
All figures are in $000's
Balance Sheet 2011 2012 2013 2014 2015

Assets
Cash and Marketable Securities 4,382.2 7,941.2 9,706.1 12,505.9 9,372.8
Accounts Receivable 5,137.7 5,754.2 6,721.6 6,990.5 7,515.1
Inventory 7,956.8 8,409.9 8,946.6 9,425.3 14,912.5
Fixed Assets 11,415.0 10,623.5 11,411.2 11,260.0 10,984.0
Total Assets 28,891.7 32,728.8 36,785.5 40,181.7 42,784.5

Liabilities & Equity

Operating Line - - - - -
Accounts Payable 3,878.9 3,826.5 3,779.9 3,982.2 2,885.6
Long Term Debt 13,500.0 13,500.0 13,500.0 13,500.0 13,500.0
Total Liabilities 17,378.9 17,326.5 17,279.9 17,482.2 16,385.6

Common Shares 50.0 50.0 50.0 50.0 50.0

Retained Earnings 11,462.7 15,352.2 19,455.5 22,649.5 26,348.9
Total Equity 11,512.7 15,402.2 19,505.5 22,699.5 26,398.9
Total Liabilities & Equity 28,891.7 32,728.8 36,785.5 40,181.7 42,784.5

Debt Equity Ratio 0.51138485

Cost of Debt 6%
Cost of Equity 22.5%
Tax rate 25%

Weight of Debt 34%

Weight of Equity 66%

WACC 16.41%
PRECEDENT TRANSACTIONS ANALYSIS
All figures are in $000's
Target Company Date Sales* EBITDA* Price** Description
Aristocrat Products Apr-08 135,000.0 14,850.0 $ 81,675 Automotive care
Franston Dec-12 120,000.0 7,200.0 $ 36,000 Automotive care
Specialty Care Nov-11 98,000.0 5,880.0 $ 28,224 Automotive care
Direct All Jun-10 365,000.0 29,200.0 $ 292,000 Automotive care
Venator Jul-14 75,000.0 7,500.0 $ 35,250 Automotive care

Notes:
* Sales and EBITDA are from the final year before the date of the deal.
** Price is for the entire firm (enterprise value).

Industry Average
Price/EBITDA Price/Sales
Aristocrat Products 5.50 0.61
Franston 5.00 0.30
Specialty Care 4.80 0.29
Direct All 10.00 0.80
Venator 4.70 0.47
Industry Average 6.0000 0.4926

Value of Enterprise 41,211 40,239

Less: Debt repayment 13500 13500
Add: Cash & Fin Inves 9,373 9,373
Value of Equity 37,084 36,111
PROJECTIONS

All figures are in $000's

2016F 2017F 2018F 2019F

Revenue 83,319.9 85,402.9 87,110.9 88,853.2

% Growth Rate 2.00% 2.50% 2.00% 2.00%

Cost of goods sold 62,898.0 64,011.0 64,560.0 65,825.0

75.5% 75.0% 74.1% 74.1%

Gross Margin 20,421.9 21,391.9 22,550.9 23,028.2

Gross Margin % 24.5% 25.0% 25.9% 25.9%

Operating Expenses

Selling Expenses 3,332.8 3,501.5 3,658.7 3,820.7

4.0% 4.1% 4.2% 4.3%
Admin & Other Expenses 6,165.7 6,319.8 6,446.2 6,575.1
7.4% 7.4% 7.4% 7.4%
Rent & Maintenance 1,416.4 1,451.8 1,480.9 1,510.5
1.7% 1.7% 1.7% 1.7%
Total Operating Expenses 10,914.9 11,273.2 11,585.8 11,906.3

% of Sales 13.1% 13.2% 13.3% 13.4%

Operating Income 9,507.0 10,118.7 10,965.2 11,121.8

Operating Income Margin 11.4% 11.8% 12.6% 12.5%

Depreciation (1098.4) (1098.6) (1098.7) (1098.8)

Capital Expenditures (1100.0) (1100.0) (1100.0) (1100.0)

Working Capital Change (1287.9) (520.7) (427.0) (435.6)

Tax Rate 25% 25% 25% 25%

Net Capex -1.6 -1.437165 -1.2934485 -1.1641037

1 2 3 4
EBITDA $ 9,507 $ 10,119 $ 10,965 $ 11,122
Less: Dep -$ 1,098 -$ 1,099 -$ 1,099 -$ 1,099
EBIT $ 8,409 $ 9,020 $ 9,866 $ 10,023
EBIT (1-Tax) /NOPAT $ 6,306 $ 6,765 $ 7,400 $ 7,517
Net Capex -$ 2 -$ 1 -$ 1 -$ 1
Change in WC -$ 1,288 -$ 521 -$ 427 -$ 436

FCFF 5,017 6,243 6,972 7,081

Disc Factor 0.8590 0.7379 0.6339 0.5446

PV of FCFF 4,310 4,607 4,419 3,856

Enterprise Value 44,621
Less: Debt repayment 13,500
Debt free Value 31,121
Add: Cash & Fin Investment 9,373
Value of Equity 40,493
 2020F

90,630.2
2.00%

66,780.0
73.7%

23,850.2
26.3%

3,897.1
4.3%
6,706.6
7.4%
1,540.7
1.7%
12,144.5

13.4%

11,705.8
12.9%

(1099.0)

(1100.0)

(444.3)

25%

-1.047693285

5
$ 11,706
-$ 1,099
$ 10,607
$ 7,955
-$ 1
-$ 444

7,510 51,124
0.4678

3,513 23,916
Sentry Valuation 11x
Senetry and Buck are of different sizes, hence, the ratio cannot be directly applied
to the Buck company. Since, it is given that Sentry is much larger in size, there
would be premium in the price of Sentry. Thus, we are assuming it to be half of the
Sentry Ratio, ie. 5.5x.

Value of Enterprise 37,777

Less: Debt repayment 13500
Add: Cash & Fin Investment 9373
Value of Equity 33650
Valuation Method Valuation
DCF Model $ 40,493.45
Relative Valuation (EBITDA Ratio) $ 37,083.99
Relative Valuation (Revenue Ratio) $ 36,111.44
Relative Valuation (Sentry) $ 33,649.73

Valuation Adjustments for Pvt Firm Buck

Key Person: We can interpret that when Cynthia is not part of the company the value of the company would be affected. It is as
Control Premium: Here, the whole company is planned to being sold, hence, the control of the company is transferred. Thus, th
would be affected. It is assumed that it would decreases by 10%.
y is transferred. Thus, there would be a premium in the valuation. Here, it is assumed to be 10%.
© Corporate Finance Institute®. All rights reserved.
Football Field Chart

Open Low High Close

DCF Model 36444.1 36444.1 44542.79 44542.79
Relative Valuation (EBITDA Ratio33375.59 33375.59 40792.39 40792.39
Relative Valuation (Revenue Rati 32500.3 32500.3 39722.59 39722.59
Relative Valuation (Sentry) 30284.76 30284.76 37014.7 37014.7

Valuation Summary
$50,010
$45,010
$40,010
$35,010
$30,010
$25,010
$20,010
$15,010
$10,010
$5,010
$10
DCF Model Relative Valuation Relative Valuation Relative Valuation
(EBITDA Ratio) (Revenue Ratio) (Sentry)
uation Relative Valuation
atio) (Sentry)