Mergers and acquisitions

profileHanlin
pinnacletradingcompsclass1.xlsx
Home>Business & Finance homework help>Mergers and acquisitions

Possible Trading Comps

Sources:
Bloomberg Trading Comps for Acquisition
Bloomberg Deal Comps for Deals AFTER this Acquisition
Bloomberg Relative Valuation Screen for the Acquirer
TARGET Firm: Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018
PF GIS K CPB HAIN JJSF SOY BRID THS POST LW
Pinnacle Foods Gen Mills Kellogg Campbell Hain Celest JJ Snack Sun Opta Bridgeford Treehouse Post Lamb Weston
Currency USD Currency USD Currency USD Currency USD Currency USD Currency USD Currency CAD Currency USD Currency USD Currency USD Currency USD
Two Year Prior Revenue $2,656 Two Year Prior Revenue $16,563 Two Year Prior Revenue $7,691 Two Year Prior Revenue $8,082 Two Year Prior Revenue $2,610 Two Year Prior Revenue $976 Two Year Prior Revenue $1,145 Two Year Prior Revenue $130 Two Year Prior Revenue $3,206 Two Year Prior Revenue $4,648 Two Year Prior Revenue $2,994
Two Year Prior Date 12/27/15 Two Year Prior Date 5/29/16 Two Year Prior Date 1/2/16 Two Year Prior Date 8/2/15 Two Year Prior Date 6/30/15 Two Year Prior Date 9/26/15 Two Year Prior Date 1/2/16 Two Year Prior Date 10/30/15 Two Year Prior Date 12/31/15 Two Year Prior Date 9/30/15 Two Year Prior Date 5/29/16
LTM Revenue $3,144 LTM Revenue $15,740 LTM Revenue $12,854 LTM Revenue $5,837 LTM Revenue $2,344 LTM Revenue $1,084 LTM Revenue $1,280 LTM Revenue $167 LTM Revenue $6,302 LTM Revenue $5,226 LTM Revenue $3,424
LTM Date 12/31/17 LTM Date 5/27/18 LTM Date 12/30/17 LTM Date 7/30/17 LTM Date 6/30/17 LTM Date 9/30/17 LTM Date 12/30/17 LTM Date 11/3/17 LTM Date 12/31/17 LTM Date 9/30/17 LTM Date 5/27/18
LTM Gross Profit $891 LTM Gross Profit $5,429 LTM Gross Profit $5,171 LTM Gross Profit $2,446 LTM Gross Profit $523 LTM Gross Profit $331 LTM Gross Profit $145 LTM Gross Profit $62 LTM Gross Profit $1,121 LTM Gross Profit $1,571 LTM Gross Profit $880
LTM EBITDA $681 LTM EBITDA $3,281 LTM EBITDA $2,833 LTM EBITDA $1,807 LTM EBITDA $253 LTM EBITDA $160 LTM EBITDA $34 LTM EBITDA $15 LTM EBITDA $755 LTM EBITDA $948 LTM EBITDA $723
LTM EBIT $544 LTM EBIT $2,784 LTM EBIT $1,605 LTM EBIT $1,489 LTM EBIT $193 LTM EBIT $118 LTM EBIT $1 LTM EBIT $12 LTM EBIT $318 LTM EBIT $625 LTM EBIT $580
LTM OCF $416 LTM OCF $982 LTM OCF $1,271 LTM OCF $1,288 LTM OCF $220 LTM OCF $125 LTM OCF $32 LTM OCF $17 LTM OCF $506 LTM OCF $387 LTM OCF $481
LFY FCF $322 LFY FCF $798 LFY FCF -$98 LFY FCF $950 LFY FCF $173 LFY FCF $53 LFY FCF -$10 LFY FCF $5 LFY FCF $346 LFY FCF $196 LFY FCF $174
EV/Sales 2.80 EV/Sales 2.43 EV/Sales 2.36 EV/Sales 1.98 EV/Sales 2.05 EV/Sales 0.94 EV/Sales 0.62 EV/Sales 1.43 EV/Sales 1.69 EV/Sales 2.87
EV/Ebitda 14.00 EV/Ebitda 20.18 EV/Ebitda 14.08 EV/Ebitda 27.45 EV/Ebitda 13.42 EV/Ebitda 37.66 EV/Ebitda 7.19 EV/Ebitda 12.65 EV/Ebitda 16.19 EV/Ebitda 14.49
EV/Ebit 17.14 EV/Ebit 30.06 EV/Ebit 18.13 EV/Ebit 42.39 EV/Ebit 18.06 EV/Ebit 143.05 EV/Ebit 9.90 EV/Ebit 19.09 EV/Ebit 36.95 EV/Ebit 17.54
PF GIS K CPB HAIN JJSF SOY BRID THS POST LW
Hist Rev Months 24 Hist Rev Months 23 Hist Rev Months 23 Hist Rev Months 23 Hist Rev Months 24 Hist Rev Months 24 Hist Rev Months 23 Hist Rev Months 24 Hist Rev Months 24 Hist Rev Months 24 Hist Rev Months 23
Hist Rev Years 2 Hist Rev Years 1.92 Hist Rev Years 1.9166666667 Hist Rev Years 1.9166666667 Hist Rev Years 2 Hist Rev Years 2 Hist Rev Years 1.9166666667 Hist Rev Years 2 Hist Rev Years 2 Hist Rev Years 2 Hist Rev Years 1.9166666667
PF GIS K CPB HAIN JJSF SOY BRID THS POST LW
Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers
Hist. Rev. Growth 8.8% Hist. Rev. Growth -2.6% Hist. Rev. Growth 30.7% Hist. Rev. Growth -15.6% Hist. Rev. Growth -5.2% Hist. Rev. Growth 5.4% Hist. Rev. Growth 6.0% Hist. Rev. Growth 13.2% Hist. Rev. Growth 40.2% Hist. Rev. Growth 6.0% Hist. Rev. Growth 7.3%
Gross Profit Margin 28% Gross Profit Margin 34% Gross Profit Margin 40% Gross Profit Margin 42% Gross Profit Margin 22% Gross Profit Margin 31% Gross Profit Margin 11% Gross Profit Margin 37% Gross Profit Margin 18% Gross Profit Margin 30% Gross Profit Margin 26%
EBITDA Margin 22% EBITDA Margin 21% EBITDA Margin 22% EBITDA Margin 31% EBITDA Margin 11% EBITDA Margin 15% EBITDA Margin 3% EBITDA Margin 9% EBITDA Margin 12% EBITDA Margin 18% EBITDA Margin 21%
EBIT Margin 17% EBIT Margin 18% EBIT Margin 12% EBIT Margin 26% EBIT Margin 8% EBIT Margin 11% EBIT Margin 0% EBIT Margin 7% EBIT Margin 5% EBIT Margin 12% EBIT Margin 17%
OCF Margin 13% OCF Margin 6% OCF Margin 10% OCF Margin 22% OCF Margin 9% OCF Margin 12% OCF Margin 2% OCF Margin 10% OCF Margin 8% OCF Margin 7% OCF Margin 14%
FCF Margin 10% FCF Margin 5% FCF Margin -1% FCF Margin 16% FCF Margin 7% FCF Margin 5% FCF Margin -1% FCF Margin 3% FCF Margin 5% FCF Margin 4% FCF Margin 5%

Trading Comps Data

Sort Summary

TARGET Firm: Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018 Annc 6/27/2018
PF GIS K CPB HAIN JJSF SOY BRID THS POST LW
Pinnacle Foods Gen Mills Kellogg Campbell Hain Celest JJ Snack Sun Opta Bridgeford Treehouse Post Lamb Weston
Currency USD Currency USD Currency USD Currency USD Currency USD Currency USD Currency CAD Currency USD Currency USD Currency USD Currency USD
Two Year Prior Revenue $2,656 Two Year Prior Revenue $16,563 Two Year Prior Revenue $7,691 Two Year Prior Revenue $8,082 Two Year Prior Revenue $2,610 Two Year Prior Revenue $976 Two Year Prior Revenue $1,145 Two Year Prior Revenue $130 Two Year Prior Revenue $3,206 Two Year Prior Revenue $4,648 Two Year Prior Revenue $2,994
Two Year Prior Date 12/27/15 Two Year Prior Date 5/29/16 Two Year Prior Date 1/2/16 Two Year Prior Date 8/2/15 Two Year Prior Date 6/30/15 Two Year Prior Date 9/26/15 Two Year Prior Date 1/2/16 Two Year Prior Date 10/30/15 Two Year Prior Date 12/31/15 Two Year Prior Date 9/30/15 Two Year Prior Date 5/29/16
LTM Revenue $3,144 LTM Revenue $15,740 LTM Revenue $12,854 LTM Revenue $5,837 LTM Revenue $2,344 LTM Revenue $1,084 LTM Revenue $1,280 LTM Revenue $167 LTM Revenue $6,302 LTM Revenue $5,226 LTM Revenue $3,424
LTM Date 12/31/17 LTM Date 5/27/18 LTM Date 12/30/17 LTM Date 7/30/17 LTM Date 6/30/17 LTM Date 9/30/17 LTM Date 12/30/17 LTM Date 11/3/17 LTM Date 12/31/17 LTM Date 9/30/17 LTM Date 5/27/18
LTM Gross Profit $891 LTM Gross Profit $5,429 LTM Gross Profit $5,171 LTM Gross Profit $2,446 LTM Gross Profit $523 LTM Gross Profit $331 LTM Gross Profit $145 LTM Gross Profit $62 LTM Gross Profit $1,121 LTM Gross Profit $1,571 LTM Gross Profit $880
LTM EBITDA $681 LTM EBITDA $3,281 LTM EBITDA $2,833 LTM EBITDA $1,807 LTM EBITDA $253 LTM EBITDA $160 LTM EBITDA $34 LTM EBITDA $15 LTM EBITDA $755 LTM EBITDA $948 LTM EBITDA $723
LTM EBIT $544 LTM EBIT $2,784 LTM EBIT $1,605 LTM EBIT $1,489 LTM EBIT $193 LTM EBIT $118 LTM EBIT $1 LTM EBIT $12 LTM EBIT $318 LTM EBIT $625 LTM EBIT $580
LTM OCF $416 LTM OCF $982 LTM OCF $1,271 LTM OCF $1,288 LTM OCF $220 LTM OCF $125 LTM OCF $32 LTM OCF $17 LTM OCF $506 LTM OCF $387 LTM OCF $481
LFY FCF $322 LFY FCF $798 LFY FCF -$98 LFY FCF $950 LFY FCF $173 LFY FCF $53 LFY FCF -$10 LFY FCF $5 LFY FCF $346 LFY FCF $196 LFY FCF $174
EV/Sales 2.80 EV/Sales 2.43 EV/Sales 2.36 EV/Sales 1.98 EV/Sales 2.05 EV/Sales 0.94 EV/Sales 0.62 EV/Sales 1.43 EV/Sales 1.69 EV/Sales 2.87
EV/Ebitda 14.00 EV/Ebitda 20.18 EV/Ebitda 14.08 EV/Ebitda 27.45 EV/Ebitda 13.42 EV/Ebitda 37.66 EV/Ebitda 7.19 EV/Ebitda 12.65 EV/Ebitda 16.19 EV/Ebitda 14.49
EV/Ebit 17.14 EV/Ebit 30.06 EV/Ebit 18.13 EV/Ebit 42.39 EV/Ebit 18.06 EV/Ebit 143.05 EV/Ebit 9.90 EV/Ebit 19.09 EV/Ebit 36.95 EV/Ebit 17.54
PF GIS K CPB HAIN JJSF SOY BRID THS POST LW
Hist Rev Months 24 Hist Rev Months 23 Hist Rev Months 23 Hist Rev Months 23 Hist Rev Months 24 Hist Rev Months 24 Hist Rev Months 23 Hist Rev Months 24 Hist Rev Months 24 Hist Rev Months 24 Hist Rev Months 23
Hist Rev Years 2 Hist Rev Years 1.92 Hist Rev Years 1.9166666667 Hist Rev Years 1.9166666667 Hist Rev Years 2 Hist Rev Years 2 Hist Rev Years 1.9166666667 Hist Rev Years 2 Hist Rev Years 2 Hist Rev Years 2 Hist Rev Years 1.9166666667
PF GIS K CPB HAIN JJSF SOY BRID THS POST LW
Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers Value Drivers
Hist. Rev. Growth 8.8% Hist. Rev. Growth -2.6% Hist. Rev. Growth 30.7% Hist. Rev. Growth -15.6% Hist. Rev. Growth -5.2% Hist. Rev. Growth 5.4% Hist. Rev. Growth 6.0% Hist. Rev. Growth 13.2% Hist. Rev. Growth 40.2% Hist. Rev. Growth 6.0% Hist. Rev. Growth 7.3%
Gross Profit Margin 28% Gross Profit Margin 34% Gross Profit Margin 40% Gross Profit Margin 42% Gross Profit Margin 22% Gross Profit Margin 31% Gross Profit Margin 11% Gross Profit Margin 37% Gross Profit Margin 18% Gross Profit Margin 30% Gross Profit Margin 26%
EBITDA Margin 22% EBITDA Margin 21% EBITDA Margin 22% EBITDA Margin 31% EBITDA Margin 11% EBITDA Margin 15% EBITDA Margin 3% EBITDA Margin 9% EBITDA Margin 12% EBITDA Margin 18% EBITDA Margin 21%
EBIT Margin 17% EBIT Margin 18% EBIT Margin 12% EBIT Margin 26% EBIT Margin 8% EBIT Margin 11% EBIT Margin 0% EBIT Margin 7% EBIT Margin 5% EBIT Margin 12% EBIT Margin 17%
OCF Margin 13% OCF Margin 6% OCF Margin 10% OCF Margin 22% OCF Margin 9% OCF Margin 12% OCF Margin 2% OCF Margin 10% OCF Margin 8% OCF Margin 7% OCF Margin 14%
FCF Margin 10% FCF Margin 5% FCF Margin -1% FCF Margin 16% FCF Margin 7% FCF Margin 5% FCF Margin -1% FCF Margin 3% FCF Margin 5% FCF Margin 4% FCF Margin 5%
Value Drivers PF GIS K CPB HAIN JJSF SOY BRID THS POST LW
Hist. Rev. Growth 8.8% -2.6% 30.7% -15.6% -5.2% 5.4% 6.0% 13.2% 40.2% 6.0% 7.3%
Gross Profit Margin 28% 34% 40% 42% 22% 31% 11% 37% 18% 30% 26%
EBITDA Margin 22% 21% 22% 31% 11% 15% 3% 9% 12% 18% 21%
EBIT Margin 17% 18% 12% 26% 8% 11% 0% 7% 5% 12% 17%
OCF Margin 13% 6% 10% 22% 9% 12% 2% 10% 8% 7% 14%
FCF Margin 10% 5% -1% 16% 7% 5% -1% 3% 5% 4% 5%
Value Drivers CPB HAIN GIS JJSF SOY POST LW PF BRID K THS
Hist. Rev. Growth -15.6% -5.2% -2.6% 5.4% 6.0% 6.0% 7.3% 8.8% 13.2% 30.7% 40.2%
Value Drivers SOY THS HAIN LW PF POST JJSF GIS BRID K CPB
Gross Profit Margin 11% 18% 22% 26% 28% 30% 31% 34% 37% 40% 42%
Value Drivers SOY BRID HAIN THS JJSF POST GIS LW PF K CPB
EBITDA Margin 3% 9% 11% 12% 15% 18% 21% 21% 22% 22% 31%
Value Drivers SOY THS BRID HAIN JJSF POST K LW PF GIS CPB
EBIT Margin 0% 5% 7% 8% 11% 12% 12% 17% 17% 18% 26%
Value Drivers SOY GIS POST THS HAIN K BRID JJSF PF LW CPB
OCF Margin 2% 6% 7% 8% 9% 10% 10% 12% 13% 14% 22%
Value Drivers K SOY BRID POST JJSF GIS LW THS HAIN PF CPB
FCF Margin -1% -1% 3% 4% 5% 5% 5% 5% 7% 10% 16%
Value Drivers CPB HAIN GIS JJSF SOY POST LW PF BRID K THS
Hist. Rev. Growth -15.6% -5.2% -2.6% 5.4% 6.0% 6.0% 7.3% 8.8% 13.2% 30.7% 40.2%
Value Drivers SOY THS HAIN LW PF POST JJSF GIS BRID K CPB
Gross Profit Margin 11% 18% 22% 26% 28% 30% 31% 34% 37% 40% 42%
Value Drivers SOY BRID HAIN THS JJSF POST GIS LW PF K CPB
EBITDA Margin 3% 9% 11% 12% 15% 18% 21% 21% 22% 22% 31%
Value Drivers SOY THS BRID HAIN JJSF POST K LW PF GIS CPB
EBIT Margin 0% 5% 7% 8% 11% 12% 12% 17% 17% 18% 26%
Value Drivers SOY GIS POST THS HAIN K BRID JJSF PF LW CPB
OCF Margin 2% 6% 7% 8% 9% 10% 10% 12% 13% 14% 22%
Value Drivers K SOY BRID POST JJSF GIS LW THS HAIN PF CPB
FCF Margin -1% -1% 3% 4% 5% 5% 5% 5% 7% 10% 16%
What do the firms in green in each row show you?
K SOY BRID POST JJSF GIS LW THS HAIN CPB
3 1 3 4 5 4 6 2 2 1
SOY CPB THS HAIN K BRID POST GIS JJSF LW
1 1 2 2 3 3 4 4 5 6
SOY CPB THS HAIN K BRID POST GIS JJSF LW
1 1 2 2 3 3 4 4 5 6

Finding Firms That are Truly Comparable on an Operating Basis

Valuation Using Trading Comps

Small Set
SOY CPB THS HAIN K BRID POST GIS JJSF LW
1 1 2 2 3 3 4 4 5 6
Mean Median %Diff
EV/S 1.69 2.80 2.05 2.87 2.35 2.43 3.1%
EV/EBITDA 16.19 14.00 13.42 14.49 14.53 14.25 1.9%
EV/EBIT 36.95 17.14 18.06 17.54 22.42 17.80 20.6%
Larger Set
SOY CPB THS HAIN K BRID POST GIS JJSF LW
1 1 2 2 3 3 4 4 5 6
Mean Median %Diff
EV/S 2.43 0.62 1.69 2.80 2.05 2.87 2.08 2.24 7.9%
EV/EBITDA 20.18 7.19 16.19 14.00 13.42 14.49 14.25 14.25 0.0%
EV/EBIT 30.06 9.90 36.95 17.14 18.06 17.54 21.61 17.80 17.6%
First Step Enterprise Value Estimated From Comps
2017 EBITDA Multiple Value
$681.40 X 14.25 EQ $9,709.95 EV
EV $9,710
Less Debt and Stronger Claims ($2,962)
(90)
Plus Cash $250
EQ Equity Val from Trading Comps 6907
Div N Shares 119.0
EQ Est Price $ 58.05
Conagra paid $68 per Share
Deeper Dive Valuation of Pinnacle
Stronger Claims Than Equity
1) Preferred 0
2) Pension and Retirement (53.25)
3) Emp Option (36.00)
4) Min Int (1.10)
5) Legal Claims 0
(90.35)
Target Company's Intangible Assets

Valuing the Target Using Trading Comps

Pinnacles 10 K

sort sample

Value Drivers PF GIS K CPB HAIN JJSF SOY BRID THS POST LW
Hist.. Rev. Growth 8.8% -2.6% 30.7% -15.6% -5.2% 5.4% 6.0% 13.2% 40.2% 6.0% 7.3%

Relative Valuation Screen