DAG Case Key Exhibits

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DAG CaseKey Exhibits

• 305 4924 4024

Wednesday, August 08, 2001
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CONTENTS

• 1. PEOPLE, CONTEXT, OPPORTUNITY DEAL ANALYSIS
• OUTLINE OF OPPORTUNITY 5 Ps
• WHAT CAN GO RIGHT/WRONG ANALYSIS
• OVERVIEW OF BUSINESS MODEL
• FINANCIAL PROJECTION
• CASHFLOW REQUIREMENTS OF BUSINESS
• OBJECTIVES OF KEY PARTIES
• CRITERIA ON WHICH TO EVALUATE DEAL
• ANALYSIS OF TERM SHEET
• ACTION PLAN

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EXHIBIT __ PEOPLE, CONTEXT, OPPORTUNITY DEAL
ANALYSIS
Evaluation of potential along four key dimensions
Pros
Cons
Overall Assessment Rationale

• ASSESSMENT OF P, C, O, D
• Despite the fragmented nature of the industry and
  the intense (and sometimes irrational)
  competition, a turnaround deal could be highly
  attractive if financial risks are limited
• Furthermore, the potential to develop national
  brand/franchise is attractive

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EXHIBIT __ OUTLINE OF APPROACH TO OPPORTUNITY
5 Ps
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Product, Placement, Promotion, Price/Performance
Value Proposition

• Product
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• Promotion
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• Value Proposition
• Chain of Upscale Dry Cleaners

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• Price Performance
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• Placement
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Source Analysis of Case
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EXHIBIT __ WHAT CAN GO RIGHT/WRONG ANALYSIS
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Pros
Cons
Overall Assessment Rationale

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Source Analysis of Case
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EXHIBIT __ OUTLINE OF KEY RISKS
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Actions taken and key conclusions
Risk
Key Questions
People risk

• Are these the right people for the venture?
• Can they execute?
• Do they have the contacts necessary?

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Market Product risk

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• Does the market exist and in large enough size to
  justify our investment?
• Can we get necessary market share
• Do we solve a customers need?
• Does this product solve the customers need?

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Business Model Risk

• Does this business model work?
• Is it the best one for the market?

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Financial Risk

• Do the numbers make sense?
• Does the business have enough cash to achieve
  breakeven burn rate?

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Execution Risk

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• Can the people execute?
• Can the team cope with bumps in the road?
• Can they overcome competitors?
• Can they recruit and build the business
  effectively?

Source Analysis of Case
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EXHIBIT __ POTENTIAL OF SIZE OF OPPORTUNITY
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Base Case
Categorization of Opportunity Size
Conclusion of Analysis
Opportunity Size
OVERALL MARKET SIZE 4bn

• This opportunity is
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Source Analysis of Case Financial Model
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EXHIBIT _ OVERVIEW OF BUSINESS MODEL
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Driver
Value
Assumption(s)
Revenues and Costs by Key Drivers
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Source Analysis of Case
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EXHIBIT __ FINANCIAL PROJECTION
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Based on cash flow projections in attached model
Source Analysis of Case Financial Model
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EXHIBIT __ PROJECTED CASHFLOW REQUIREMENTS OF
BUSINESS
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Base Case
Source Analysis of Case Financial Model
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EXHIBIT __ PROJECTED CASHFLOW REQUIREMENTS OF
BUSINESS
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Base Case
Source Analysis of Case Financial Model
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EXHIBIT __ OBJECTIVES OF KEY PARTIES
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Contributions and risks of each party
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Give-up
Get

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Notes

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Source Analysis of Case
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EXHIBIT __ CRITERIA ON WHICH TO EVALUATE DEAL
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Source Analysis of Case
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EXHIBIT __ ANALYSIS OF TERM SHEET
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Analysis of proposed deal along 6 key dimensions
What you would like
Walk-away
Terms
Implications
Evaluation
Source Analysis of Case
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EXHIBIT __ ACTION PLAN
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Details
Dimension

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Key Steps Responsibilities

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Assumptions

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Contingencies
Source Analysis of Case
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EXHIBIT __ KEY STAKEHOLDERS AND THEIR INTERESTS
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Stakeholder
Interest
Interest
Interest
Stakeholder
Interest
Stakeholder
Interest
Interest
Interest
Interest
Interest
Stakeholder
Source Analysis of Case