7. Part I: Public Cos Trade at Premium Based on data from 4,528 private company transactions and 397 public company transactions across all industry groups from January 1996 to August 2002. Universe restricted to transactions under $100 million. 18.2 13.1 13.2 1.1 Public Company Median 96.2% 9.3 Price/Net Income 60.8% 8.2 Price/EBT 64.8% 8.0 Price/Gross Cash Flow 57.7% 0.7 Price/Net Sales Public Company Premium Private Company Median Valuation Ratio
8. Part I: Cost and Time Advantages 1 Year $1,000,000 1,500 AIM London 90 - 180 Varies 2,100 NASDAQ small cap 90 - 180 Varies 1,800 AMEX 60 - 120 $250 – 750,000 2,200 OTC BB 60 - 90 $1 - 200,000 4,500 Pink Sheets Timing Cost of Shell # of Cos Exchange