LionTree Investment Banking Pitch Book
Discounted Cash Flow Analysis of Luna Synergies¹
($mm)
Synergies
% Growth
Less: Integration Costs
EBIT (post-integration costs)
Less: Taxes @ 15.0%
After-Tax EBIT
Tax Synergies
Total FCF from Synergies
% Growth
Discounted Free Cash Flows
NPV of Terminal Value
Total Synergy DCF Value²
Saturn Value Per Share of DCF Synergies
9.00%
$3.39
9.25%
$3.29
WACC
9.50%
$3.20
9.75%
$3.12
10.00%
$3.04
Source: Synergies per Saturn management
LionTree 1) Assumes mid-year convention, discounted back to 3/31/16
2) Assumes 9.50% WACC and 0.0% PGR
9.00%
1,006
Calendar Year Ended December 31,
2017E 2018E 2019E
52
nm
(20)
32
(5)
27
50
77
69
9.25%
977
52
0.0%
(5)
47
WACC
(7)
40
50
90
16.5%
73
52
0.0%
9.50%
951
0
52
(8)
44
Sensitivity of DCF Synergy Value
50
94
4.7%
70
9.75%
925
2020E
52
0.0%
0
52
(8)
44
50
94
0.0%
64
674
951
10.00%
901
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