Manufacturing. Accelerated.
Transaction priced at a discount to peer multiples
Implied EV based on comparable
companies current trading valuations
Commentary
•
Based on the organic growth plan
Pro forma for transaction, Company will
have $625M on the balance sheet (1)
2
Significant opportunity to deploy for
strategic & accretive acquisitions
Vertical integration through materials &
parts, enabling larger-scale, higher
growth & margin enhancement
Comparable companies
$9,415
$5,649
Summary of
approach
Implied future enterprise value
EV / Revenue
Metric
CY 2024E
$584M
CY 2025E
$942M
9.7x-16.1x 2024E Revenue
6.0x - 10.0x 2025E Revenue
Transaction valuation
Discounted value of
comparable companies (2)
Post-money valuation
$3,960
$2,376
Implied discounted enterprise value
(Discount rate: 20%)
9.7x-16.1x 2024E Revenue
6.0x - 10.0x 2025E Revenue
$1,836
Post-money enterprise value
3.1x 2024E Revenue
1.9x 2025E Revenue
Applies a range of 6.0x - 10.0x multiples to Desktop Metal 2025E revenue to arrive at an implied future enterprise value. The future enterprise value is
discounted 4.75(2) years back to September 30, 2020 to arrive at an implied discounted enterprise value
The applied range of multiples is centered around the mean of Desktop Metal's peer group (9.0x), with sensitivity built on both high and low ends
2025E projected financials-based valuation is the appropriate approach given the significant revenue growth of Desktop Metal over the next few years
D Desktop Metal
2.
1. Assumes no redemptions by Trine Acquisition Corp's existing shareholders and transaction expenses of approximately $49M.
Discounted as of September 30, 2020 using mid-year discount convention.
3.
Source: Desktop Metal projections based on management estimates; peer projections based on company filings and FactSet as of August 25, 2020.
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