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Fairness Opinion Detail

Franchise Group, Inc. to Management-led buyout (B. Riley Financial)

General Retail/May 2023/Jefferies

Deal Information

Target
Franchise Group, Inc.
Acquiror
Management-led buyout (B. Riley Financial)
Sector
General Retail
Target Type
Public
Acquiror Type
Financial
Advisors
Jefferies

Transaction Metrics

Enterprise Value
$2.6B
EV / LTM Sales
EV / LTM EBITDA
8.3x
EV / Fwd EBITDA

Advisor Transaction Comparables

Comparable transactions cited by the advisor, excluding the subject transaction.

Advisor: Jefferies

EV/LTM EBITDA selected range: 6.8x - 8.5x

33 comps
Jan 2021Pet Supplies Plus
Category: Pet Retail (2)
Franchise Group, Inc.--8.8x-
Nov 2018Greencross
Category: Pet Retail (2)
TPG Capital--10.0x-
May 2023Mattress Firm Group Inc.
Category: Home and Furniture (8)
Tempur Sealy International, Inc.--9.3x-
Jan 2022Mattress Warehouse, LLC
Category: Home and Furniture (8). EV / LTM EBITDA: ND (not disclosed).
Wynnchurch Capital, L.P.----
Nov 2021W.S. Badcock Corporation
Category: Home and Furniture (8)
Franchise Group, Inc.--4.2x-
Nov 2021Casper Sleep Inc.
Category: Home and Furniture (8). EV / LTM EBITDA: NM (not meaningful).
Durational Capital Management LP----
May 2021At Home Group Inc.
Category: Home and Furniture (8)
Hellman & Friedman--7.9x-
May 2021Dreams
Category: Home and Furniture (8)
Tempur Sealy International, Inc.--6.3x-
Dec 2019American Freight Group, Inc.
Category: Home and Furniture (8)
Franchise Group, Inc.--9.6x-
Jan 2017Art Van Furniture
Category: Home and Furniture (8). EV / LTM EBITDA: ND (not disclosed).
Thomas H. Lee Partners----
Jun 2020GNC Holdings LLC
Category: Beauty, Health and Wellness (4)
Harbin Pharmaceutical Group Holding Co., Ltd--6.9x-
Aug 2019Vitamin Shoppe, Inc.
Category: Beauty, Health and Wellness (4)
Franchise Group, Inc.--3.8x-
Jun 2017Whole Foods Market Inc.
Category: Beauty, Health and Wellness (4)
Amazon.com Inc.--10.3x-
Jun 2017The Body Shop
Category: Beauty, Health and Wellness (4)
Natura Cosmetics S.A.--13.0x-
Dec 2021American First Finance
Category: Finance Driven Retail (2)
FirstCash Holdings, Inc.--12.1x-
Dec 2020Acima Holdings
Category: Finance Driven Retail (2)
Rent-a-Center, Inc.--7.3x-
Oct 2023Diamonds Direct USA Inc.
Category: Specialty Retail (13)
Signet Jewelers Limited--7.1x-
Apr 2022BrandsMart U.S.A.
Category: Specialty Retail (13)
The Aaron's Company, Inc.--5.0x-
Apr 2021West Marine
Category: Specialty Retail (13). EV / LTM EBITDA: ND (not disclosed).
L. Catterton----
Mar 2021The Michaels Companies, Inc.
Category: Specialty Retail (13)
Apollo Global Management, Inc.--6.8x-
Dec 2020Sportman's Warehouse Holdings, Inc.
Category: Specialty Retail (13)
Great Outdoors Group, LLC--6.0x-
Sep 2020J.C. Penney Company, Inc.
Category: Specialty Retail (13). EV / LTM EBITDA: ND (not disclosed).
Brookfield Property Group / Simon Property Group----
Aug 2019Party City (Canada)
Category: Specialty Retail (13)
Canadian Tire Corporation--9.9x-
Jun 2019Barnes & Noble, Inc.
Category: Specialty Retail (13)
Elliott Management Advisors--5.7x-
Apr 2019Smart and Final Stores, Inc.
Category: Specialty Retail (13). EV / LTM EBITDA: ND (not disclosed).
Apollo Global Management, Inc.----
Oct 2018Marshall Retail Group
Category: Specialty Retail (13)
WH Smith plc--13.7x-
Jun 2017Staples, Inc.
Category: Specialty Retail (13)
Sycamore Partners--5.0x-
Apr 2017Cabela's Incorporated
Category: Specialty Retail (13)
Bass Pro Shops--10.4x-
Jan 2017Leslie's Holdings, Inc.
Category: Specialty Retail (13). EV / LTM EBITDA: ND (not disclosed).
L. Catteron----
Jun 2022Goddard Systems, Inc.
Category: Unit Based Education (4)
Sycamore Partners--22.0x-
Feb 2022Houghton Mifflin Harcourt Company
Category: Unit Based Education (4)
Veritas Capital--9.9x-
Feb 2022Mathnasium
Category: Unit Based Education (4). EV / LTM EBITDA: ND (not disclosed).
Roark Capital----
Oct 2021Lakeshore Learning Materials, LLC
Category: Unit Based Education (4). EV / LTM EBITDA: ND (not disclosed).
Leonard Green & Partners, L.P.----
Mean-8.8x-
Median-8.4x-