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HappyHour Co. is a producer and marketer of beer, spirits, and non-alcoholic beverages based in Singapore with operations also in Malaysia and China. The company expects revenues to grow 11% to over $1 billion in FY2020 with EBITDA margins reaching 28%. The document provides an overview of an auction process for the potential sale of HappyHour Co., outlining key workstreams and timelines for interested bidders to submit initial indicative bids in May and final bids in July after further due diligence.

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194 views2 pages

Task 2 Template

HappyHour Co. is a producer and marketer of beer, spirits, and non-alcoholic beverages based in Singapore with operations also in Malaysia and China. The company expects revenues to grow 11% to over $1 billion in FY2020 with EBITDA margins reaching 28%. The document provides an overview of an auction process for the potential sale of HappyHour Co., outlining key workstreams and timelines for interested bidders to submit initial indicative bids in May and final bids in July after further due diligence.

Uploaded by

1231303513
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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 and non-alcoholic US$mm FY18A FY19A FY20E
beverages Revenue 900 961 1071

 Operations also include distribution and direct sales Growth (%) - 7% 11%

 Geography of operations are in Singapore, Malaysia, China


Beer 100 110 135
 Owns and operates manufacturing facilities in Singapore and
China, while manufacturing is outsourced in Malaysia to Brew Spirits 75 85 105

Co. Non-alcoholic 50 55 60
beverages
 Founded in 1975 by majority owner and co-founder Ms. Happy
EBITDA 225 250 300
 Headquarters in Singapore
Margin (%) 25% 26% 28%

NPAT 135 153 193

Shareholders Margin (%) 15%% 16% 18%

20% Indicative valuation


US$MM

2020E EBITDA 300


20% 60% Growth (%) 20%

EV/EBITDA range 10.0x – 11.5x

Happy family Hour family Co family Valuation range 3000 - 3500


Source:

1
CONFIDENTIAL

Overview of auction process and key workstreams

Date Event Key workstreams


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

Late May 2020 Commencement of Final Bid Phase Site visit & management presentation
Release of Process Letter Two  Arrange site visit and participation of management presentation
Due diligence
 Continue to conduct due diligence based on further information
provided in data room
 Maintain Q&A log
Round 2: Final Valuation
Bid Phase Late July 2020 Final Bids due  Refine valuation analysis based on financial forecasts provided
Financing
 Confirm financing sources
Approvals
 Start to prepare application for internal and regulatory approvals

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