Evercore Investment Banking Pitch Book
Process Considerations
Illustrative HFS Divestiture
Assumes sale of Harland Financial Solutions on 12/31/11 with the net after-tax proceeds used to pay down debt
Assumed tax basis of $275 million
Assumes that the pro rata portion of HFS corporate and divisional expenses are able to be reduced
Illustrative future MFW share price discounted to 6/30/11 at a 25% cost of equity
Pro Forma '12E Adj.
EBITDA Multiple
Implied Share Price Pro Forma for Divestiture
Illustrative HFS Multiple (12E Adj. EBITDA) / Parbase Price
7.00x
8.00x
8.50x
$596
$681
$724
4.50x $11.41
$13.80
$14.99
4.75x
15.70
18.09
19.28
5.00x
20.00
22.38
23.58
5.25x
5.50x
24.29
28.58
7.50x
$6.38
$12.61
16.90
21.19
25.48
29.77
26.67
30.97
Source: M & F Worldwide Projections, Updated Case
EVERCORE PARTNERS
Breakeven '12E PF
Adj. Multiple
27.87
32.16
9.00x
$766
$16.18
20.48
24.77
5.23x
29.06
33.35
7.50x
$638
5.16
Implied Breakeven PF Multiple at $24 per Share
Illustrative HFS Multiple (12E Adj. EBITDA)/ Parchase Price
7.00x
8.00x
8.50x
$596
$681
$724
5.09
Multiple
Pro Forma '12E Adj.
EBITDA
18.
% Premium/(Discount) to $24 Offer per Share
4.50x
4.75x
5.00x
5.25x
5.50x
5.00x
Illustrative HFS Multiple (12E Adj. EBITDA) / Parebase Price
7.00x
8.00x
8.50x
$596
$681
(47.5%)
(42.5%)
(29.6%) (24.6%)
(11.7%)
(6.7%)
6.2%
11.1%
24.1%
(52.4%)
(34.6%)
(16.7%)
1.2%
19.1%
Preliminary Draft - Confidential
9.00x
3766
4.96x
7.50x
$638
29.0%
(37.5%)
(19.7%)
(1.8%)
16.1%
34.0%
9.00x
$766
(32.6%)
(14.7%)
3.2%
21.1%
39.0%View entire presentation