This spreadsheet supports STUDENT analysis of the case, "Palamon Capital Partners/TeamSystem S.p.." !Case #$ Please note: #$ This is a %or&in' model. ssumptions / (nputs presented (nputs presented can )e chan'ed to *ary the results. +$ This model incorporates an intentional circularity. To resol*e the circularity, please set the spreadsheet pro'ram to iterate # times or so !see T--S/-PT(-NS/CCU T--S/-PT(-NS/CCUT(-N$. T(-N$.
Copyright © 2001 by the University of Virginia Virginia Darden School Foundation. evised! Dece"ber #$ 200%.
Exhibit 2 Historical Size of European Venture Capital Industry
&'hibit 2 P-N CP(T P0TNE0S/TES1STE S.P.. (istorical Data on &uropean )rivate &*uity +ar,et (in Euro millions) -ear "ount aised "ount /nvested 1 %$1 3$241 10 3$%4 3$12# 11 3$1 3$#2 12 3$123 3$401 1 $32% 3$11% 13 #$# %$330 1% 3$ %$%3# 1# 4$#0 #$4 14 20$002 $#%% 1 20$3 13$3#1 1 2%$301 2%$11#
$ s n o i l l i m 0 U 0$000 E !
Ne% 2un !E
2%$000 20$000 1%$000 10$000 %$000 6 1 10 11 1
Source of data! &uropean )rivate &*uity 5 Venture Capital ssociation.
$ s n o i l l i m 0$000 0 U 2%$000 E !
2unds !E
20$000 1%$000 10$000 %$000 6 1 10 11 1
Exhibit 2 Historical Size of European Venture Capital Industry
ds 0aised per 1ear 0 millions$
2 1 13 1% 1# 14 1 1
n*ested per 1ear U0 millions$
2 1 13 1% 1# 14 1 1
Exhibit 4 TeamSystem Proforma Income Statement (Values in Lira Millions)
&'hibits 3 and P-N CP(T P0TNE0S/TES1STE S.P..
7ea"Syste"$ S.p.. (istorical and )ro6For"a /nco"e State"ent 8values in "illions of lire9 TeamSystem (ncome Statement PRO-FORMA
#334
#335
#336
#333
+
+#
++
1%: 0$00
1%: 2$011
+7
+8
+
+4
32$22
%0$#3
#0$3
8$49 8$09 829 81$#49
811$309 8$#29 839 820$%1#9
812$2%9 810$9 81$39 823$#309
81%$149 812$9 81$%%9 82$1219
81$09
8#$0039
831$30%9
83$9
83#$%29
83$139
8%2$249
8%%$309 3%.00: of sales
Total personnel costs
83$4%9 81$%%9 83%#9 84$1#9
8%$29 82$0349 8319 84$109
8#$229 81$149 8%429 8$4419
84$1%19 82$0119 84%9 8$1%9
810$439
812$3019
813$2#29
81%$1149
81#$0239
81#$#9
81$00%9
81$0%9 1%.%0: of sales
82$49
8$0%29
8$19
81$9
82$49
8 $2009
8 $#09
8$019
83$1%9
83$9
83$#3#9
83$2%9
$ 81$0%29
11$333 81$3249
13$1%0 81$%%9
20$123 81$##9
23$# 8%9
2$30 8009
2$##3 84%9
3$#23 8 1$0109
#$401 8 1$03#9
$0 8 1$0%9
31$24 8 1$12#9
3$412 81$1409 2%.00: of ))5& and /ntang
$34 81%9 1$00
10$014 81339 1$0%
12$4% 81%39 1$12
1$3 82109 1$2
2$# 8$1#09 %#1
24$%0 8$1#09 1$1%4
1$# 8$1#09 1$%%
$#13 82$4#%9 2$01
%$#%% 81$4%9 2$30
4$1 81$1%9 2$1
30$111 8%9 $10
32$%32 6 3$%04
10$%# 8%$409
11$14 8#$#9
1$44 8#$349
1$%#2 8$%2%9
21$2#% 810$2049
2%$%00 812$2309
0$ 813$%39
2$ 81%$119
#$0 814$229
$33# 81$39
3$02# 820$#%29
&arnings before "inorities &li"ination of interco"pany invest
3$# 809
3$34 819
4$# 819
10$0# 8249
Net income
3$##
3$3##
4$14
$43
11$0%
1$2#0
1%$4
14$12
1$4##
20$%12
22$4
$##%
Total sales
Cost of "aterials Cost of service ents and leasing Total operatin' cost
Salaries Social contributions
E9(TD
Depreciation 5 a"orti=ation E9(T
/nterest e'pense >on6op inco"e Preta profit
7a'es
#: #: #: #: 4$%2 10$ 10$%# 11#$1#2
+5
1%: #$%4
#: gro;th 12$11
3.00: of sales
#.4: interest %.00: return on ",t secur
34$03 822$%39 3.00: of pre6ta' profit
23$3#%
Exhibit TeamSystem Proforma !alance Sheet (Values in Lira Millions)
TeamSystem 9alance Sheet #334
#335
#336
#333
+
+#
++
+7
+8
+
+4
+5
1%$202 &rr!%22 23$00 1$#00 &rr!%22
14$32 &rr!%22 24$#0 1$30 &rr!%22
1$%1 &rr!%22 2$2% 1$%1 &rr!%22
1$#3 &rr!%22 1$01% 2$0# &rr!%22
20$21 &rr!%22 2$4# 2$12 &rr !%22
22$041 &rr!%22 3$3 2$2 &rr!%22
2$% 1.0: of sales 0$133 )?U@ #$ 0.0: of sales 2$3# 2.0: of sales 1%2$31
SSETS
Cash +ar,etable securities eceivables /nventory
1$02
1$13
21$133
2$%1
1$2%4 1$ 24$#2
13$%4 1$04 %$14
1#$2 1$1% $ ##4
1$33 1$2% 3$11
1$%00 11$223 20$42 1$1 3#$
13 3$#2 42 24 1$33 %$13
22 2$00 ## 1$34 1$14 31$0#
1 2$3 1$130 1$4 1$22 3%$ 21
21 $#1 2$0%% 1$#% 1$22# %$0
20 1$%1 1$4 2$04 1$1 %$04
20 1$%1 2$000 2$300 1$#00 &rr!%22
20 1$%1 2$00 2$4#0 1$30 &rr!%22
20 1$%1 2$3 2$2# 1$%1 &rr!%22
20 1$%1 2$%% $102 2$0# &rr!%22
20 1$%1 2$430 $2 2$12 &rr !%22
20 1$%1 2$03 $3% 2$2 &rr!%22
20 1$%1 $04 $#3 2$3# 1#$44#
4$##1 #$4# 1$200 2$# 1$3%
$2 $24 1$124 2$03 21$0
$# $##0 1$2%4 2$2% 21$121
$## $%# 3$1%# $0%% 2#$#
11$12 11$12 $34 3#$000 41$432
12$02 12$02 3$000 3#$000 4%$#03
13$422 13$422 3$#01 3#$000 0$033
1%$#0% 1%$#0% 3$44 3$%00 40$%4
1#$%31 1#$%31 %$1# 2$000 #1$2%2
14$%3 14$%3 %$34 11$%00 %2$034
1$%# 1$%# % $0 6 32$0
1$401 1$401 #$1%4 6 3%$%%
3$%0 #$## 3$%3
3$%0 $332 3$30%
3$%0 11$##2 4$12
3$%0 1%$3 $##0
3$%0 823$9 1$2#0
3$%0 811$19 1%$4
3$%0 3$##1 14$12
3$%0 21$4 1$4##
3$%0 30$%%% 20$%12
3$%0 #1$0#4 22$4
3$%0 $330 23$3#%
+inority interest
1%$00 1$00
1$324 ##1
2$43 4#
0$123 1$04
3$%0 2%$%33 11$0% 8#1$0009 81$19 1$
8#$%%9 &rr!%22
$231 &rr!%22
2#$# &rr!%22
3%$1% &rr!%22
#%$#34 &rr!%22
$020 &rr!%22
112$3# %$42
Total shareholders< e>uity and minority interest
1#$0
1$0
23$1#0
1$20
814$%9
&rr!%22
&rr!%22
&rr!%22
&rr!%22
&rr!%22
&rr!%22
11$21
%$13
31$0#
3%$ 21
%$0
%$04
&rr!%22
&rr!%22
&rr!%22
&rr!%22
&rr !%22
&rr!%22
1#$44#
7otal ssets 7otal ?iab )?U@
32$% %$04 11$223
3$304 &rr!%22 &rr!%22
%%$324 &rr!%22 &rr!%22
%$#%4 &rr!%22 &rr!%22
#2$00 &rr!%22 &rr!%22
#%$40 &rr!%22 &rr!%22
#$%%# &rr!%22 &rr!%22
4$# 1#$44# 0$133
3#$000 0: 6
0: 6
0: 6
2%: 811$%009
2%: 811$%009
2%: 811$%009
2%: 811$%009
Total current assets
/ntangible assets ?and$ ))5&
2.%: of sales .0: of sales 2.0: of sales
(9((T(ES
ccounts payable 7a' and other payables Deferred inco"e and accruals ?ong6ter" liabilities Total lia)ilities
1#.0: of sales 1#.0: of sales %.0: of sales
S;0E;-DE0S< E=U(T1 ND (N-0(T1 (NTE0EST
Capital eserves
Total shareholders< e>uity
Total shareholders< e>uity and lia)ilities
7otal ssets 7otal ?iab )?U@
DE9T 0EP1ENT
Starting balance )rincipal due )ay"ent
.%: of e*uity
&'hibit 4 P-N CP(T P0TNE0S/TES1STE S.P.. Sources and Uses of Cash in )roposed ?everaged estructuring 8values in "illions of lire9 Sources! Debt &'cess cash
Uses! Special dividend 6 pril 2000 Special dividend 6 closing
3#$000 1%$000 #1$000
$%00 %2$%00 #1$000
Exhibit " #$er$ie% of Publicly Traded E&P Companies
&'hibit 10 P-N CP(T P0TNE0S/TES1STE S.P.. Valuation +easures for )ublicly 7rades &nterprise esource )lanning 8&)9 Soft;are Co"panies
dAusted +,t Value 8a9 as a +ultiple of! ?ong67er" evenues Tier # ? ar'e E0P Players aan D &d;ards
3.0 ' 1.# ' #. ' 2. ' . ' 1.# ' 3.# ' . '
?ong67er"
+ 2#.2 ' 2.0 ' 2.# ' 32.1 ' 2.# ' 1.0 ' 32.1 '
&)S >+ 4. ' 34. ' >+ 4%.2 ' 4. ' %.# ' 4%.2 '
&*uity +ar,et Value as a +ultiple of! Cal. 1 Cal. 2000 Cal. 2001 &)S &)S &)S &st. 8b9 &st. 8b9 &st. 8b9
?ong67er" )roAected &)S @ro;th 8b9
C- 1 )B& to ?7@
@ro;th ates 1 -ear ev. &/7
?ong67er" +argins &/7
>et
>+ >+ ' 32.1 ' >+ #1. ' 32.1 ' %2.0 ' #1. '
>+ %.0 ' 3.3 ' %3. ' 3%. ' 3.3 ' %4.% ' %.0 '
>+ 43. ' 24. ' 33. ' #.# ' 24. ' 3%. ' 43. '
2#: 24: 23: 23: 2%: 23: 2%: 24:
>+ >+ 13: 21: 12: 13: 1%: 21:
.2: 33.2: 2.#: #1.1: 31.: .2: %.: #1.1:
>+ 44.0: 2.4: 31.4: 14.3: 14.3: 32.2: 44.0:
6.0: #.2: 21.2: .: 1.4: 6.0: .: 21.2:
630.2: %.0: 13.#: 2.1: 11.1: 630.2: 61.%: 13.#:
Tier + ? iddle ar&et ccountin' Soft%are Companies
@reat )lains Soft;are /ntuit /nc. &picor Soft;are Sage @roup Sy"i' ?o; +ean (igh
3. ' %. ' 1.% ' 1#.0 ' 0.4 ' 0.4 ' %. ' 1#.0 '
.1 ' 32. ' >+ %.% ' .2 ' .1 2.3 %.%
%#.1 ' 3.# ' > 3. ' 12.# ' 12.# ' 3.2 ' 3. '
3.2 ' #2.3 ' %3.2 ' 41.1 ' 1.% ' 1.% ' 3. ' 41.1 '
4. ' %2.3 ' 1.1 ' %.2 ' 12.1 ' 12.1 ' %.4 ' %.2 '
2.0 ' 3.2 ' 13.2 ' 3.0 ' .3 ' .3 ' 24.# ' 3.2 '
%: 21: 2: %: 2: 21: 2: %:
10: 234: ##: 1#%: 3: 3: 12#: 234:
%4.%: 12.: > 2%.: 3.3: 12.: #.2: %4.%:
%0.%: 30.1: > 2#.#: #.0: 2#.#: 11.: %0.%:
%.: 1.#: 610.0: 24.3: .3: 610.0: 1.4: %.:
.%: 1#.: 610.2: 14.4: %.1: 610.2: 4.4: 14.4:
0. ' 1.# ' 14.# ' .1 ' 0. ' %. ' 14.# '
30.2 ' 6#.2 ' 4.# ' >+ 6#.2 ' 1#. ' 4.# '
32.0 ' >+ 12#. ' >+ 32.0 ' 3.% ' 12#. '
1%.# ' #2.1 ' 31.# ' 42.4 ' 1%.# ' 3.0 ' 42.4 '
4.4 ' 2.% ' 2.0 ' 1. ' 4.4 ' 2%. ' 2.0 '
.% ' > > > .% ' .% ' .% '
121: > > > 121: 121: 121:
#: > > > #: #: #:
2##.3: %1.4: 1.%: 2.1: 2.1: 10.2: 2##.3:
20.1: 11%.#: 14.: 6##.0: 6##.0: 3.2: 20.1:
2.1: 62.3: 22.1: 60.2: 62.3: %.3: 22.1:
1.: 6%.%: 13.0: 1.1: 6%.%: 2.: 13.0:
Tier 7 ? -thers
gresso /ntentia >avision rain /nternational ?o; +ean (igh
8a9 ased on dAusted +ar,et Cap.$ ;hich is defined as &*uity +ar,et Value E ?ong 7er" Debt 6 Cash 5 &*uivalents. 8b9 ased on /BB&BS esti"ates. Source! Datastrea".
Exhibit ' Summary (ata for Selected E&P Companies (Dollars in thousands, except per share data)
&'hibit 11 P-N CP(T P0TNE0S/TES1STE S.P.. Financial Data for Selected &nterprise esource )lanning 8&)9 Soft;are Co"panies 8values in thousands of dollars$ e'cept per6share data9 &*uity +ar,et Value
?ong 7er" Debt
Cash 5 &*uiv.
dAusted +ar,et Value 8a9
evenues
200$%3# 6 01$130 6 41$ %
121$#4 211$42 2$%#2$4#3 3$1%% #$ 311
2$41#$3#4 1$#14$#0 #0$021$122 $11$24 31$ 2$04
#43$##3 1$001$2# $24$2%2 1$$0% %$0%2$ 21
82%#$33#9 #1$32 1$42$1 11$4 %$%%
Tier + ? iddle ar&et ccountin' Soft%are Companies @reat )lains Soft;are 4#4$ 6 12$# /ntuit /nc. #$34#$010 #$03 1$4#1$200 &picor Soft;are 1%3$44 6 34$03 Sage @roup %$4$#3 1#$03# 4$141 Sy"i' 3$321 3$10 $2#1
#33$210 3$4%0$% 104$#4 #$0%%$%2 %$2#
13$04 13$ 4$# 44$344 12$010
4$3 111$00 84$9 10$%% 10$43
41$242 %1$% #3$322 24$204
%$ 4 %2$ #$4% 4#$##
1$441 8$3009 $1%% 81#39
Tier # ? ar'e E0P Players aan 2$#4$#1 D &d;ards 1$2$%
Tier 7 ? -thers gresso /ntentia >avision rain /nternational
$ %%3 %%4$214 #%%$404 2%#$3
1$ #$ 6 1$1
1$#0 12$#%% #$2% $2
8a9 ased on dAusted +ar,et Cap.$ ;hich is defined as &*uity +ar,et Value E ?ong 7er" Debt 6 Cash 5 &*uivalents. 8b9 ased on /BB&BS esti"ates. Source! Datastrea"
&)S
Cal. 2000 &)S &st. 8b9
Cal. 2001 &)S &st. 8b9
81.%9 0.3% 0.4 0.0% %.
0.0 0.1 1.21 0.2# . 4#
0.# 2.1% > 0.% 0.1
1.2 1.4 0.21 0. 0.%
0. 23 0.43 0.0 1.2#
0. 03 80.429 0.20 0.1
oo, Value
7otal ssets
0.10 0.2 1.%0 0.2 10.#
112$21 %$# $#%$2#4 ##3$22 2$ 0#$1
##$%10 %0$34 4$2%$#%3 1$330$#0% 3$ 0$0#
1.42 2.14 0.24 1.1 1.22
1$1 1$#4$30% 122$1# 11$14 #$43
10$2%2 2$3#$#% 1$4% #%0$4% 4$3#
0.% > > >
30$03 103$0% $%30 #%$#%
$4 24%$413 2%$124 104$33
&'hibit 10 P-N CP(T P0TNE0S/TES1STE S.P.. ecent ?iraB&uro &'change ates
/7?B&U &urBUSD /7?BUSD Sep6 1##. 1.0#3 112.2 ov6 101. 1.00 11.34 Dec6 112.# 1.00#2 123.3 an600 20%%.0 0.404 13.2
ira/@ 2100.0 2000.0 100.0 100.0 1400.0 1#00.0 1%00.0 Sep6
Source of data! loo"berg ?).
>ov6
Dec6
an600
