Business Valuation (Income Approach)- DCF M

Periods

0
Q1,2012

Net income
Operating cash flow
Free Cash flow
DCF
NPV / Price

-1
Q2,2012

-2
Q3,2012

$174,329

$235,358

$245,584

$177,329
$177,329
$177,329
$21,452,895

$238,358
$238,358
$232,419

$248,584
$248,584
$236,351

*This valuation represents the NPV under best circumstances for Sugar Bowl when Pvt. Events are also organized and Wed n

Growth Rate per quarter

Pvt. Parties per quarter
Rev/ pvt. Party

1.5%
7
5000

ProportionateMargins
0.5
0.5
Drinks
0.3
0.46875
Food
0.2
0.8
Lane Admission
Rev / person
Depreciation
CAPEX
D/V
E/V
Kd
Ke
Tax Rate
WACC

Year
Depreciation

2006
54007

$
$
$

52.0
3,000
- Assume no CAPEX as it is in Q1,2012 where no ch
82.2%
17.8%
8%
11% Assumed slightly higher than the K
36% Recorded from last 2 quarters
10.6%
d

2007
132103

2008
184122

ome Approach)- DCF Method

-3
Q4,2012

-4
Q1,2013

$249,268

$253,007

$252,268
$252,268
$233,878

$256,007
$256,007
$231,431

-4
Terminal value

$22,501,585
$20,341,486

en Pvt. Events are also organized and Wed night similar alternative has also been secured.

Assumed
Chambell managed to secure 7 pvt. Parties in less than a quarter

Drinks have high contribution margin. Say 50%

No as such variable expense on Bowling.

e no CAPEX as it is in Q1,2012 where no change in depreciation shows no CAPEX.

ed slightly higher than the Kd

ed from last 2 quarters

2009
178046

2010
408500

2011
658962

2012
658962

Bowling League
Weeks
Events
Persons
Revenue
Payment/person
Food & Beverages
Total Revenue per event
Total Revenue
less: expenses
Total T-shirt exp
Total Drinks dis.
Drinks
Catering cost
Bowling alley foregone charges
Total cost
Total profit (2 months)
Repeat customers (est.)

8
8
60
$120
$31
$9,060
$72,480
$2,400
$2,400
$3,600
$3,600
$14,400
$26,400
$46,080
30

ZULU Band
Weeks
Shows/Events
Persons
Revenue
Admission payment
Food & Beverages
Lane Revenue (4lanes)
Total Revenue per event
Total revenue
Less: expenses
Band fees
Catering cost
Drinks
Total cost per event
Total cost
Total Profit (6-months)
Repeat Customers (est.)

24
12
75
$750
$2,475
$120
$3,345
$40,140

vacated lanes not considered opportunity cost,

rather revenue because previous trends show
that no more than 120 patrons visit on Wed,
showing already less turnover and less
occupied lanes

$1,500
$281 Assuming drinks a margin-booster offering with
especially after identification of
$938 50%margin,
speciality drinks that provided highest
$2,719 Contribution Margin for quarter ended Dec,2011
$32,625
$7,515
6

Question 5
Customer count
Revenue per person
Cost per person
Net profit per person
Customers Proportion (Mon)
Customers Proportion (Tues)
Weekly Variable expenses

Mondays
Tuesday

Lane Rental (10 persons)

Drink (1 per head for 10 persons)
Tapas (1 per head for 10 persons)
Collective

Q1 2012
22,680
$52
$39
$13
0.05
0.07
$45,662.17
Revenues
Expenses
$5,252
$2,440
$6,500
$3,020

Regular
$300
$100
$80
$480

Deal
$430

Profit
$2,812
$3,480

Q3,2011 Q4,2011 Q1,2012

Income
Lane Rental
179,021 275400 267,540
Food Sale
159667 448,500 410,270
Li or Sale
243,763 559,270 501,350
Total
582,451
### 1E+006
Variable Cost of Sales
Food Purchased
110,250 181386 199336
Liquor Purchased
105000 249530 201600
Food & Bevera Su
129,157 114,500 147,011
Total
344,407 545,416 547946
General Overhead Expenses
Marketing and Advertising
15,000
15000
15,000
Salaries: Full Time
48,498
48,498
48,498
Salaries: Part Time
18,720
34528
23,900
Catering wage
25,920
32,027
25,920
Coupons
9,000
11000
9,000
Igal and Audit
3,600
3600
3,600
License & Permits
2475
6000
6,000
Office Supplies
3450
5,450
3450
Rent
43,000
43,000
43,000
Repair & Maintenance Labo 29550
34550
29,550
Repair & Maintenance Suppl 49,000
58000
63,000
Utilities
26,100
24040
23520
Travel & Promotion
3,000
3000
3,000
Insurance
28500
33,000
33,000
Miscellaneous
8,500
7,500
9,700
Total General
314,313 359,193 340,138
Interest payment: Bank
8,000
8,000
8,000
Interest payment: Friends &4,000.00 4,000.00 4,000.00
Deprecia tion
3,000
3,000
3,000
Tax
132,496 101,946
Net Income
-91269 231065 174,329

change change
53.8%
-2.9%
180.9%
-8.5%
129.4% -10.4%
120.3%
-8.1%
64.5%
137.6%
-11.3%
58.4%

9.9%
-19.2%
28.4%
0.5%

0.0%
0.0%
84.4%
23.6%
22.2%
0.0%
142.4%
58.0%
0.0%
16.9%
18.4%
-7.9%
0.0%
15.8%
-11.8%
14.3%
0.0%
0.0%
0.0%

0.0%
0.0%
-30.8%
-19.1%
-18.2%
0.0%
0.0%
-36.7%
0.0%
-14.5%
8.6%
-2.2%
0.0%
0.0%
29.3%
-5.3%
0.0%
0.0%
0.0%
-23.1%
-24.6%

-353.2%