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HappyHour Co. is a leading producer and marketer of beer, spirits, and non-alcoholic beverages in Singapore and Malaysia, with plans for expansion in Cambodia. The company has shown consistent revenue growth and is currently undergoing an auction process for potential buyers, with indicative bids due by May 13, 2020. The majority owner, Ms. Happy, is looking to exit the business as she plans for retirement.
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0% found this document useful (0 votes)
6 views

task 2 c

HappyHour Co. is a leading producer and marketer of beer, spirits, and non-alcoholic beverages in Singapore and Malaysia, with plans for expansion in Cambodia. The company has shown consistent revenue growth and is currently undergoing an auction process for potential buyers, with indicative bids due by May 13, 2020. The majority owner, Ms. Happy, is looking to exit the business as she plans for retirement.
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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lOMoARcPSD|54654994

Overview Key financials


FY20EC
n Asia based producer and marketer of beer, spirits and non-alcoholic US$mm
FY18A FY19A 1,071O
beverages in Singapore, Malaysia and China n Founded in 1975, Revenue
900 961 11
headquartered in Singapore n #1 player in beer and spirits in Singapore Growth (%)
- 7% %
and Malaysia n Recently expanded operations in China

n Owned and operated manufacturing facilities in Singapore and China n


Beer
100 110 135
Malaysian manufacturing outsourced to Brew Co. Spirits
75 85 105
Non-alcoholic beverages
50 55 60
NFIDENTIAL EBITDA 225 250 300
Margin (%) 25% 26% 28%

HappyHour Co. NPAT 135 153 193


Margin (%) 15% 16% 18%

Leading producer and marketer of beer and spirits in Singapore and Malaysia with growing operations in the region

n New facilities planned for Cambodia

n Majority owner and co-founder Ms. Happy rumoured to be looking to exit as she wants to retire in a few years and has no close family to inherit the business

Shareholders
Hour family
20%

Happy family Co family


60% 20% EV/EBITDA range 10.0x – 11.5 x
Valuation range 3,000 – 3,500

Indicative valuation
US$mm
2020E EBITDA 300
Growth (%) 20%

Source: Company website; Broker industry reports; News articles

lOMoARcPSD|54654994

CONFIDENTIAL

Overview of auction process and key workstreams

Date Event By 5pm May 13, 2020 (HKT) Indicative Bids due
Mar 19, 2020 Commencement of Indicative Bid Phase Key workstreams
Due diligence n Conduct initial due diligence based on Indicative Bid
Release of Indicative Bid Documents
Documents n Maintain Q&A log
Valuation
From 9am Apr 9, 2020 to Lodgement of Indicative Bid Questions
Round 1: n Conduct initial valuation analysis based on Indicative Bid Documents
5pm Apr 13, 2020 (HKT)
Indicative Bid Structure and financing n Confirm buyer entity (if any
Phase
co-investor) n Initiate financing discussion
Approvals
n Confirm if any internal and regulatory approvals needed
Commencement of Final Bid Phase Site visit & management presentation

Release of Process Letter Two n Arrange site visit and participation of management presentation
Due diligence
n Continue to conduct due diligence based further
on information
provided in data room
n Maintain Q&A log
Valuation
Final Bids due
n Refine valuation analysis based on financial forecasts provided
Financing
n Confirm financing sources
Approvals
n Start to prepare application for internal and regulatory approvals

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