Fastlane Valuation

Project Fastlane

MBA Investment Bankers LLC February 15, 2013

Presented by: Vinayak Srivastava

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Fastlane – Firm Outlook

• Closely held and well managed company that has sustained the worst crisis since the great depression • Increasing profitability trend (both in US and Europe operations) • Owns 100% of the real estate – appraisal expected to further go up as the real estate market recovers • Under no financial distress to liquidate • Motivation to sell - diversification

*ROE growth rate is higher as compared to ROA due to high leverage

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Current Situation – Offer vs. Book Value

• Autobahn Offer: $160M Cash • Cash needed to settle long-term debt: $82.663 • Net Cash that Fastlane receives: $160 - $82.663 = $77.34M (for $120.52M of net long-term assets) • A sale would make sense if the offer is ($120.52+$82.663) ~ $203 Million

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Industry Outlook

1. 2. US economy and car sales are on the recovery European economic recovery is lagging – Fastlane is still profitable in Europe Seller’s market in US for automotive dealership sales Significant upswing expected in car sales especially in the luxury segment as 401Ks recover their values 1. 2.

Business risks

Current business model predicated on one brand Global economies are in a fragile state, any further shock can adversely affect the economic recovery in US and worsen the situation in Europe Barrier to entry for dealerships is currently low due to low real estate prices. Investments in a new dealership in a competing brand at a nearby location could impact the sales projections

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Valuation Methodologies

• Discounted Cash Flow • Blue Sky • Adjusted Book Value

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Assumptions

1. No translational currency risk between estimated and actual statements for the European subsidiary 2. Non-recurring expenses on the current year’s (2012) statements have been excluded in the projections 3. Cost of Equity and Borrowing is same in US and Europe and hence same discount rate...