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  "documentTitle": "Focus Media Holding Ltd. (FMCN)",
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  "authorName": "Carson C. Block",
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      "text": "It is difficult to understand how a litigious competitor could become a worthy acquisition target at a premium valuation in such a short period.",
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      "text": "Total Potential Consideration: $350.0",
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      "text": "On January 2, 2008, FMCN completed the acquisition of CGEN... FMCN was required to inject an additional $30.0 million working capital loan... this early funding of the working capital facility is yet another red-flag...",
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      "text": "All FMCN shares to be issued in under the earn-out payments would be new issuances. According to FMCN Management at the time of the transaction announcement, the acquisition agreement valued CGEN at 17.5x FY08E net income...",
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      "text": "Ironically, back on March 16, 2006, CGEN had commenced a $1.7 million litigation case against FMCN and the Hymart chain of supermarkets in Shanghai because of FMCN's interference with CGEN's exclusive business contract with Hymart.",
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      "text": "102 2007 20-F, Exhibit 10.162, pp. 54-55",
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      "text": "Initial Purchase Price $168.4; Potential 24-Month Earn-Outs $181.6; Total Potential Consideration $350.0; Revenue Multiples 2006A 8.1x, 06/30/07 LTM 5.0x; Net Income Multiples 2006A NM, 06/30/07 LTM 20.9x, 2008E 17.5x; Liquidated Damages $80.0",
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