BTR Dunlop Holdings, Inc. - Page 21




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                                        Comparable          Schlegel UK               
                    Multiple             Average               Value                  
               Market value/sales            1.03               $62,280,000           
               Market value/book value       1.68                12,374,000           
               Market value/EBITDA*          9.73                59,559,000           
               Market value/EBIT*           13.48                64,987,000           
               Market value/EBI*            18.17                55,238,000           
               Average value                              $50,888,000                 
               *E=Earnings; I=Interest; T=Taxes; D=Depreciation; A=Amortization.      
               Shapiro then applied this same approach to eight publicly              
          traded companies.  The principal difference between the two                 
          approaches is that comparison to publicly traded companies values           
          Schlegel UK as a stand-alone company, whereas the preceding                 
          approach valued Schlegel UK as an acquisition target.  The                  
          results from the publicly traded market multiple analysis are as            
          follows:                                                                    
                                  Comparable               Schlegel UK               
                    Multiple             Average               Value                  
               Market value/sales            0.84               $50,262,000           
               Market value/book value       1.36                 9,152,000           
               Market value/EBITDA           7.46                44,565,000           
               Market value/EBIT            11.11                52,729,000           
               Market value/EBI             13.09                38,488,000           
                    Average value                               $39,039,000           
               Lastly, Shapiro used the sale of Schlegel Corporation for              
          $233.2 million as a market comparable applying the market                   
          multiples from Schlegel Corporation to the financial data of                
          Schlegel UK in arriving at an average value of $41.338 million.             







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Last modified: May 25, 2011