Professional Documents
Culture Documents
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Potential Acquisitions
• Given Aardvark’s large cash balance, it could make a wide variety of
acquisitions – ranging from small “tuck-in” deals to acquire technology
and IP to larger deals driven by customer or market share acquisition
• Tier 1 Potential Acquisitions
– “Tier 1” acquisition candidates are worth over $1 billion and would
significantly boost Aardvark’s market share or result in substantial revenue or
cost synergies
– Leading candidates include ARM, for its chipset technology and integration
with Aardvark’s existing products, and Research in Motion – to capture
additional share in the corporate smartphone market
• Tier 2 Potential Acquisitions
– “Tier 2” acquisition candidates are worth less than $1 billion and would
enhance Aardvark’s core technology and fill in gaps in existing products
– Potential acquisitions include specialized chipset and semiconductor
companies as well as Web 2.0, social media, and mobile software companies
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Potential Acquisition
Candidates
Tier 1 Acquisition Candidates
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Company Profile: ARM
Management Team:
Financial Information:
Products:
Market Cap: $36B Key Partners:
Cash: $2.5B •BlackBerry Pearl 3G – Provides Trackpad and dedicated
2009 Revenue: $13B media keys as well as SureType technology and 3G
2009 EPS: $3.70
AT&T, Brightstar, Digital China, GPXS,
network support. Hewlett-Packard, IBM, Skype, Sprint,
2010E Revenue: $17B
2010E EPS: $5.03 •BlackBerry Bold – Provides extended battery life as Tata Indicom, T-Mobile, Verizon,
well as GPS, Wi-Fi, and 3G network support. Virgin, and Vodafone,
•BlackBerry Curve 8500 – Includes Trackpad and
dedicated media keys, easy media sharing, and 2.0 MP
camera.
•BlackBerry Tour 9630 – Provides GPS, worldwide
compatibility, and 3.2 MP camera.
•BlackBerry Storm – Features Wi-Fi, SurePress
technology, and 3G network support.
•BlackBerry Curve 8900 – Features thin, lightweight
design as well as GPS and Wi-Fi support and 3.2 MP
camera.
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Process Recommendations
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Key Recommendations
• We recommend engaging in targeted discussions with the Tier 1 acquisition
candidates and assessing their receptiveness to M&A discussions
• At the same time, Goldman Stanley will reach out to Tier 2 candidates and
introduce Aardvark as a potential acquirer
• M&A process with Tier 1 candidates will take significantly longer due to the scale
of the companies, so we recommend conducting both processes simultaneously
• Depending on responses from Tier 1 and Tier 2 candidates, Goldman Stanley and
Aardvark may do additional research to determine other potential acquisitions and
then approach them
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Process Recommendation
Broad
Marketing
Appendix
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Aardvark Projected Income Statement
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Aardvark Comparable Public
Companies
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Aardvark DCF Analysis – WACC
Calculation
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