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Task 2 Template

HappyHour Co. is a leading producer of beer, spirits, and non-alcoholic beverages in Singapore and Malaysia. It is looking to sell the majority of its shares as the owner wishes to exit the business. The company has experienced strong revenue growth in recent years and expects further expansion. An overview of the auction process is provided, outlining key dates, workstreams including valuation, due diligence, and obtaining necessary approvals for any potential sale.

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Amardeep Tayade
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837 views2 pages

Task 2 Template

HappyHour Co. is a leading producer of beer, spirits, and non-alcoholic beverages in Singapore and Malaysia. It is looking to sell the majority of its shares as the owner wishes to exit the business. The company has experienced strong revenue growth in recent years and expects further expansion. An overview of the auction process is provided, outlining key dates, workstreams including valuation, due diligence, and obtaining necessary approvals for any potential sale.

Uploaded by

Amardeep Tayade
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


L Leading producer of beer ,spirit and non alcoholic beverage in Singapore and Malaysia

Overview Key financials


 Asian based producer of beer ,spirits and non-alcoholic beverages

 Operations includes manufacturing distribution and direct sales in Singapore


US$mm FY18A FY19A FY20A
(HQ),Malaysia (manufacturing in Malaysia is outsoursed to brew co )and china Revenue 900 961 1071
Growth(%) 0% 7% 11%
 Recently expanded operations to china and has expansion plans for combodia

 Majority owner and co-founder Ms .happy looking to exit with no close family to Beer 100 110 135
inherit the business
Spirits 75 85 105
 Key strength Non-alcoholic beverages 50 55 60
 Largest bear and spirit company in Singapore and Malaysia EBITDA 225 250 300
 Largest non-alcoholic beverages in Malaysia
Margin(%) 25% 26% 28%

 Developed a strong supply hain with stron relationship with distributers


NPAT 135 153 193
Margin(%) 15% 16% 18%
Shareholders

Indicative valuation
20%
US$mm
Happy Family 2020E EBITDA 300
Hour Family Growth (%) 20%
Co Family
20% 60%

EV/EBITDA Multiple 10.0x - 11.5x


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
 Initial valuation analysis based on indicative bid documents

Round 1: 9am Apr 9,2020 – 5pm Apr Indicative bid Q&A submission due Structure and Financing
Indicative Bid  Begin Financing Discussion
13,2020(HKT)
Phase

Approval
5pm May 13,2020 (HKT) Indicative Bid Due  Collect and confirm required approvals

Late may 2020 Start of final Bid phase Site visit and management presentation
Release of process letter two  Organize visit and presentation

Due diligence
 Conduct due diligence based on new information collected
 Organize Q&A Submissions

Round 2: Final Late July 2020 Final Bid Valuation


Bid Phase
 Finalize valuation based on the financial forecasts

Financing
 Confirm source for financing

Approvals
 Commence preparing application for internal regulatory approvals

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