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Monmouth

Monmouth. Capitalizing on Distress. Nicolas Lindstrom Samuel Nadeau Franco Perugini. Mandate. How should Monmouth approach the Robertson opportunity?. Recommendation. Offer 2.1 NewCo shares for every 1 Robertson share; Valuing the Company at $29.2M or $50 per share.

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Monmouth

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  1. Monmouth Capitalizing on Distress Nicolas Lindstrom Samuel Nadeau Franco Perugini

  2. Mandate How should Monmouth approach the Robertson opportunity?

  3. Recommendation Offer 2.1 NewCo shares for every 1 Robertson share; Valuing the Company at $29.2M or $50 per share Accretive as of 2005

  4. Strategic Rationale

  5. What are you buying?

  6. Monmouth Acquisition Criteria

  7. The Benefits of the Mergers

  8. Rationale

  9. Valuation

  10. Valuation Overview

  11. Standalone Assumptions

  12. Income Statement Operating leverage from SG&A optimization

  13. Working Capital Assumes flat WC ratios

  14. Comparable Companies Robertson is slightly more levered

  15. WACC Re-levering the comparable betas provides a Robertson beta of 1

  16. DCF Depreciation offsets capex

  17. DCF - Standalone $25.40 standalone intrinsic value; stock most likely bid up due to takeover buzz

  18. Deal Proposal Minimum offer price needs to be $50 for support, therefore offer $50.

  19. Pro-Forma P&L Monmouth takeover would lead to outsized growth and leverage

  20. Accretion/Dilution Deal turns accretive in 2005 from Synergies

  21. Implementation

  22. Timeline

  23. Ownership Structure

  24. Rationale

  25. Long-term timeline

  26. Management Recommendation

  27. Conclusion

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