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HappyHour Co. is a leading producer of beer, spirits, and non-alcoholic beverages in Singapore and Malaysia, with recent expansions into China and plans for Cambodia. The company is experiencing growth in revenue and EBITDA, with a projected valuation range of $3,000-$3,500 million based on a 2020E EBITDA of $300 million. The auction process includes multiple phases for indicative bids, final bids, and due diligence, with key workstreams outlined for valuation, financing, and approvals.

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Gaurav Gupta
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5 views

Task 2

HappyHour Co. is a leading producer of beer, spirits, and non-alcoholic beverages in Singapore and Malaysia, with recent expansions into China and plans for Cambodia. The company is experiencing growth in revenue and EBITDA, with a projected valuation range of $3,000-$3,500 million based on a 2020E EBITDA of $300 million. The auction process includes multiple phases for indicative bids, final bids, and due diligence, with key workstreams outlined for valuation, financing, and approvals.

Uploaded by

Gaurav Gupta
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


Leading producer of beer, spirits and non-alcoholic beverages in Singapore & Malaysia growing current operations

Overview Key financials


 Asia bases producer of bear, spirits and non-alcoholic beverages.
US$mm FY18A FY19B FY20E
 Operations include manufacturing, distribution and direct sales in
Revenue 900 961 1,071
Singapore(HQ), Malaysia (manufacturing in Malaysia is outsourced to Brew
Co.) and China. Growth(%) - 7% 11%
 Recently expanded operations to China and has expansion plans for
Beer 100 110 135
Cambodia.
Spirits 75 85 105
 Majority owner and co-founder Ms. Happy looking to exit with no close family
Non-Alcoholic beverages 50 55 60
to inherit the business.
 Key Strengths:
EBITDA 225 250 300

 Largest Beer and Spirits company in Singapore and Malaysia. Margin(%) 25% 26% 28%
 Largest non-Alcoholic beverages in Malaysia.
NPAT 135 153 193
 Developed a strong supply chain with strong relationship with distributors.
Margin(%) 15% 16% 18%

Shareholders Indicative valuation

Co
Family US$mm
20% 2020E EBITDA 300
Happy Growth (%) 20%
Family
60%
Hour EV/EBITDA Multiple 10.0x-11.5x
Family
20%
Valuation Range 3,000-3,500

Source:

1
CONFIDENTIAL

Overview of auction process and key workstreams

Date Event Key workstreams


Mar 9, 2020 Access to Indicative Bid Documents Valuation
Access to
￭ Initial valuation analysis based on indicative bid documents
Indica

Structure and Financing


9am Apr 9, 2020 - 5pmApr Indicative Bid Q&A Submission Due
Round 1: 13, 2020 (HKT) ￭ Begin Financing Discussion
Indicative Bid
Phase
Approvals
5pm May 13, 2020 (HKT) Indicative Bid Due ￭ Collect and confirm required approvals

Site visit & management presentation


Late May 2020 Start of Final Bid Phase ￭ Organize site visit and presentation
Release of Process Letter Two
Due diligence
￭ Conduct due diligence based on new information collected
￭ Organize Q&A submissions

Late July 2020 Final Bid


Valuation
￭ Finalize valuation based on the financial forecasts
Round 2: Final
Bid Phase
Financing
￭ Confirm sources for financing

Approvals
￭ Commence preparing application for internal regulatory
approvals

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