Srikant BluntlyMedia

BLUNTLY MEDIA: A PRIVATE COMPANY VALUATION

BUSINESS VALUATION LUATION AND FINANCIAL MODELLING MODELL ING

SUBMITTED BY: Srikant Sharma

SUBMITTED TO: Dr. Nidhi Kaicker 

SCHOOL OF BUSINESS, PUBLIC POLICY AND SOCIAL ENTREPRENEURSHIP AMBEDKAR UNIVERSITY DELHI

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CASE FACTS Paterson P!"#s$#n% Co&'an(: It was a Fortune 200 publishing and printing company that  provides products and solutions related to commercial printing and integrated communications.  It is the buyer company that shows interest to buy Bluntly Media. B"nt"( Me)#a: he co. was !ounded in "##0$ and was a private direct marketing agency that  provided print and digital marketing solutions !or a broad range o! clients$ retailers$ banks$ newspaper % maga&ine publishers. It is the company to be bought by Paterson Publishing. S"atestone: It is one o! the ' companies given in the case$ and its role is to represent (luntly )edia$ advise it and !acilitate its eventual sale to a suitable buyer at the right price. *a+son Fer)(:  *n intern at Slatestone who has given the task o! valuation o! (luntly )edia.

Ca"+"at#on o- .ACC

For beta calculations$ average o! unlevered beta has been taken which is given. Formula !or Le/ere) !eta + unlevered beta,-" -"/ta1D3 ratio1. he a 4ate$ 4isk !ree rate and 5ost o! Debt are given in the case only which is '67$ 2.8#7 and '.97 respectively. :*55+ D;,Kd-"/ta13;,Ke + 6.97

PV o- t$e -#r& !( FCFF

he growth rate has been assumed to be '.27 -eact1$ which is also the industry growth rate. 5urrent ?iabilities Ca'e0+ 5hange in Fied *ssets FCFF+ 3(I-"/ta1  Depreciation > 5hange in :5 > 5ape PV o- Ter&#na" Va"e  + K@"--"5661 A61$ this is !or 6 years B:*55 calculated !or the calculated ;. 2

So$ <; o! the B"nt"( Me)#a comes out to be ₹ 12345674 .

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