From: [Your Name]
To: Bob
Subject: M&A Recommendation for Webflix
Hi Bob,
Please find attached the following summary investment recommendation for Webflix. Based on my
research and analysis, I believe Nintendo would be a suitable target given the following strategic
rationale:
• Strengthen Gaming Capabilities – Webflix would be able to immediately accelerate its internal
video game content capabilities, allowing it to create stronger, “stickier” relationships with its
existing customer base while also serving to expand the size of its total addressable market
• Deepen Penetration in APAC Region– By acquiring Nintendo, Webflix would be able to bolster its
market penetration in the key Asia-Pacific region, for which it generated <11% of its total revenue in
2021, providing a significant driver of growth to combat a maturing US/Canada market
Assuming 8.5% WACC and 12x Terminal Multiple on Forward (2026E) EBITDA, the business is valued in
the range of $63.6 billion to $75.8 billion, with a midpoint valuation of $70.0 billion.
Finally, based on the client’s financing objectives of maintaining a tax-efficient capital structure and
minimizing business disruptions, I have determined the target could be acquired using term loans (bank
debt) originated from our DCM group.
Please let me know if you have any comments or questions and I look forward to your feedback.
Regards,
[Your Name]