Coppersmith Presentation to Alere Inc Stockholders
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COPPERSMITH
Coppersmith's Nominees firmly believe proper governance requires board members to objectively consider all available
strategies on the basis of complete access to company information. Therefore, if elected, they look forward to evaluating
all strategies for the maximization of value for Alere stockholders
Coppersmith's Plan For Alere: Targets + Timetables = Accountability
However, on the basis of public information and thorough due diligence, Coppersmith is proposing a clearly defined
action plan with specific financial goals, and the stockholder representation needed to enact it:
1. Divest Health Management (HM) and form a services partnership for monitoring
2. Aggressive portfolio rationalization to kickstart deleveraging
3. Rationalize operations: $50-$100mm in cost savings with announced milestones for accountability to stockholders
We believe that if a strategic plan like Coppersmith's were successfully implemented, Alere could potentially be valued
at $43 to $58 per share, or 74% to 136% higher than Alere's price as of 6/28/13
In our view, the resulting streamlined company would be highly attractive to strategic and financial acquirors
(dollars in millions)
Low
$456.5
Pro Forma EBITDA (with $50-$100mm cost savings)5
EBITDA Multiple
10.0x
Core Diagnostic Value
Estimated Net Debt & Preferred at 12/20136
Equity Value
Implied Value Per Share
Vs. Current Price
4,565.4
1,032.8
3,532.5
$42.67
74.2%
High
$506.5
11.0x
5,571.9
602.1
4,969.8
$57.84
136.1%
We believe Coppersmith's action plan is closely aligned with stockholders' hopes for AlereView entire presentation