{
  "docId": "019de06f-60c6-76df-80d1-b4d09245da5c",
  "docSlug": "e81601f3c0058d365b4757536ba31a98",
  "documentTitle": "Moelis & Company | Investment Banking Pitch Book | 40 slides",
  "authorId": "moelis-company",
  "authorName": "Moelis & Company",
  "documentKindSlug": "consulting-deck",
  "documentKindLabel": "Consulting deck",
  "sourceTypeSlug": "investment_bank",
  "sourceTypeLabel": "Investment bank",
  "presentationDate": "2015-11-01 00:00:00",
  "orientation": "landscape",
  "aspectRatio": 1.2929293,
  "pageNumber": 23,
  "pageCount": 40,
  "prevPage": 22,
  "nextPage": 24,
  "slideType": "appendix_data",
  "function": "cite_precedent",
  "density": "overcrowded",
  "nDataPoints": 0,
  "notes": "The slide serves as a methodological disclosure for a valuation analysis, justifying the selection of peer groups and the choice of financial metrics.",
  "elementsJson": null,
  "metadataConfidence": 1,
  "imagePath": null,
  "slideHref": "/slides/019de06f-60c6-76df-80d1-b4d09245da5c/23",
  "deckHref": "/decks/019de06f-60c6-76df-80d1-b4d09245da5c",
  "deckJsonHref": "/decks/019de06f-60c6-76df-80d1-b4d09245da5c.json",
  "deckAnchorHref": "/decks/019de06f-60c6-76df-80d1-b4d09245da5c#slide-23",
  "components": [
    {
      "bbox": {
        "h": 0.08,
        "w": 0.85,
        "x": 0.108,
        "y": 0.62
      },
      "kind": "list",
      "text": "As a result, Moelis deemed media and licensing businesses as most relevant, given industry dynamics: Theater businesses require higher capital expenditures and have a different cost structure, IP licensing businesses lack exposure to film slate and also have a different cost structure",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "00738c6e-f497-4764-bdeb-7440b3d5fcd9",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.12,
        "w": 0.85,
        "x": 0.108,
        "y": 0.195
      },
      "kind": "list",
      "text": "Although none of the selected companies are directly comparable to Rhombus given the unique nature of Rhombus' business, Moelis focused on selected companies operating in the following categories: Media / Technology Licensing, Theater Exhibitors, Other IP Licensing",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "0b3a042f-91fc-4b26-95a8-5fd9e93287e5",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.06,
        "w": 0.85,
        "x": 0.108,
        "y": 0.71
      },
      "kind": "list",
      "text": "For the purposes of analyzing calendar year results, as directed by Rhombus Management, quarterly FY2017 and FY2018 projections were estimated by applying average quarterly EBITDA contributions over the past four years to full year FY2017 and FY2018 estimates",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "81773825-ef93-474d-bb3b-1f055632a485",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.1,
        "w": 0.85,
        "x": 0.108,
        "y": 0.51
      },
      "kind": "list",
      "text": "Relevant Rhombus attributes include: Vast majority of revenues derived from technology licensing, Exposure to the cyclicality of the film slate, COGS comprised of cinema system depreciation and glasses; operating expenses largely scalable",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "a5be4b1d-ce21-4da7-9a43-e292466f69e6",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.15,
        "w": 0.85,
        "x": 0.108,
        "y": 0.78
      },
      "kind": "list",
      "text": "While IMAX may operate in the same industry as Rhombus, there are a number of differences between the business models of the two companies: IMAX provides an end-to-end cinematic solution, IMAX typically receives a larger percentage of the exhibitor's box-office receipts than Rhombus, IMAX is more diversified",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "d57420dc-c0fd-49dc-a1d6-a21718a34554",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.85,
        "x": 0.108,
        "y": 0.42
      },
      "kind": "list",
      "text": "Because of the inherent differences amongst the businesses, operations and prospects of Rhombus and those of the selected publicly-traded companies, Moelis made judgments to select appropriate reference ranges shown on page 21 for the selected companies trading analysis",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "dee1c9b2-2d8e-4647-a374-28845453d912",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.08,
        "w": 0.85,
        "x": 0.108,
        "y": 0.33
      },
      "kind": "list",
      "text": "Moelis believes EBITDA multiples are more relevant than sales multiples in this case: Accounting for the margin profile of Rhombus' business, Area of focus for research analysts in valuing the comparable businesses",
      "attrs": null,
      "subkind": "bullet",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "f5d55190-2cc3-4a46-acec-f0c6ab9fe4c7",
      "frameworkName": null,
      "frameworkSlug": null
    },
    {
      "bbox": {
        "h": 0.03,
        "w": 0.45,
        "x": 0.108,
        "y": 0.115
      },
      "kind": "title",
      "text": "Selected Publicly Traded Companies Analysis Overview",
      "attrs": null,
      "subkind": "headline",
      "toolName": null,
      "toolSlug": null,
      "confidence": null,
      "componentId": "1f80aba0-c54e-4814-a07d-b360e7ba343c",
      "frameworkName": null,
      "frameworkSlug": null
    }
  ],
  "metrics": [],
  "tools": [],
  "frameworks": [],
  "arcBeats": [
    {
      "to": 24,
      "from": 15,
      "beatId": "cbb4c4b6-ba06-4d77-8e5f-6b4ff3bfe20a",
      "arcName": "The Consultant's Gambit",
      "arcSlug": "consultants-gambit",
      "beatName": "Evidence & Proof",
      "beatSlug": "consultants-gambit-evidence-proof",
      "evidence": "The financial performance and valuation summary sections provide evidence and proof to support the analysis.",
      "position": 2,
      "confidence": 0.8,
      "parentBeatName": "Evidence",
      "parentBeatSlug": "evidence"
    }
  ],
  "loops": [
    {
      "to": 29,
      "from": 23,
      "name": "Mece Breakdown",
      "slug": "40-mece-breakdown",
      "bestFor": "Problem structuring, ensuring completeness, strategic analysis",
      "matchId": "fd800d44-011b-4877-b9a7-89b586d9095b",
      "evidence": "The valuation summary and discounted cash flow analysis sections demonstrate a MECE (mutually exclusive, collectively exhaustive) breakdown of Rhombus's valuation.",
      "position": 2,
      "objective": "To provide a comprehensive and mutually exclusive analysis of Rhombus's valuation",
      "structure": "The Whole -> Category A (distinct) -> Category B (distinct) -> Category C (distinct) -> Complete Coverage",
      "confidence": 0.6,
      "description": "Divide a complex topic into mutually exclusive, collectively exhaustive categories"
    }
  ],
  "imagePathAlt": null,
  "thumbSrc": null,
  "thumbSrcAlt": null,
  "locked": true
}