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Investment Banking simulation task

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Kanika Rajput
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6 views

Task 2 Complete

Investment Banking simulation task

Uploaded by

Kanika Rajput
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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CONFIDENTIAL

HappyHour Co. Company Profile

Overview Key financials

• Producer and marketer of beer, spirits (vodka,


• Overview of revenue, EBITDA and NPAT US$mm
tequila), and non-alcoholic beverages (soft drinks,
tea, water, functional drinks). FY18A FY19A FY20E Revenue 900 961 1,071 EBITDA
• Includes distribution and direct sales. 225 250 300 NPAT 135 153 193 EBITDA breakdown by
• Operations in Singapore, Malaysia, and China. segment US$mm FY18A FY19A FY20E Beer 100 110
Recently expanded to China and has plans for new 135 Spirits 75 85 105 Non-alcoholic beverages 50 55 60
facilities in Cambodia.
• Founded in 1975 by majority owner and co-founder
Ms. Happy.Headquarters located in Singapore.

Shareholders Indicative valuation

• Happy Family: 60% ownership (majority owner • The indicative valuation for the company is reported to be
and co-founder Ms. Happy). US$3,500 million. The valuation is based on key metrics
• Hour Family: 20% ownership. from the broker industry report, which indicates an
• Co Family: 20% ownership. EV/EBITDA range of 10.0x to 11.5x. This suggests that
• Additionally, it is noted that Ms. Happy is looking the valuation aligns with market expectations for similar
to retire soon and has no one in her immediate companies in the industry.v
family to pass the business onto, which has led
to rumors of a potential sale of the company.

Source:

1
CONFIDENTIAL

Overview of auction process and key workstreams


Date Event Key workstreams
- Release of the Information Memorandum, vendor due diligence
Mar 19, 2020 Access to Indicative Bid Documents reports, and financial forecasts in the online data room.
- Bidders gain access to essential transaction information.
Apr 9, 2020 Start of Q&A Process - Bidders may begin submitting questions regarding the
Indicative Bid Documents.
Apr 13, 2020 Deadline for Question Submission - Questions must be submitted via the specified form
(Appendix I to Financial Advisor).
Round 1: - Bidders must submit their questions by 5 PM (Hong Kong
Indicative Bid Time).
Phase - Limit of 20 questions per bidder.
By Apr 20, 2020 Responses to Q&A -Financial Advisor provides responses to submitted questions.
- Responses are shared with all bidders via the online data room,
maintaining confidentiality of the question sources.
-Bidders must submit their Indicative Bids by 5 PM (Hong Kong
May 13, 2020 Submission of Indicative Bids Time).
- Preparation of bids based on information gathered and responses
received from the Q&A process.

Late May 2020 Release of Process Letter Two -Initiation of the Final Bid Phase
June 2020 Access to Due Diligence Materials -Further access to the electronic data room
Round 2:
June 2020 Guided Site Visits - Site visits for Shortlisted Bidders
Final Bid -Presentations by HappyHour’s management team
June - July 2020 Presentations from Management
Phase
Additional Q&A Process -Further questions submitted by Shortlisted Bidders
July 2020
-Full and legally binding bids submitted
Late July 2020 Submission of Final Bids

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