beaman capital group

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Beaman Capital Group Private Equity | Venture Capital | Mezzanine | Consulting

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Page 1: Beaman Capital Group

Beaman Capital Group

Private Equity | Venture Capital | Mezzanine | Consulting

Page 2: Beaman Capital Group

Imagine partnering with an investment firm built on…

Character & Principles and staffed with competent and highly qualified…

Professionals dedicated to meeting your needs and who share a common…

Vision of delivering more than you ever believed was possible to achieve

Page 3: Beaman Capital Group

THE FIRM

Page 4: Beaman Capital Group

Beaman Capital Group is a regional private equity and consulting firm that is

based in the heart of the City of Dallas, Texas. Built on a strong foundation of

financial theory and engineering principles, and with strong roots in private

equity, valuation design, and financial modeling; Beaman Capital Group selects

investments and advises on private market portfolios that capitalize on a variety

of economic, financial, fundamental, and technical metrics designed to maximize

its returns with reduced risk exposure.

Employing an industrial and entrepreneurial vision, Beaman Capital Group

strives to create value by creating applicable investment and risk management

strategies as well as process improvement through its consulting services.

About

Page 5: Beaman Capital Group

Founding Partner

Michael J. BeamanFounding Partner

Michael J. Beaman is a graduate of Purdue

University where he earned his Bachelor of

Science in Industrial Management and

Industrial Engineering and is a successful

entrepreneur and business owner.

After purchasing and building his

corrugated manufacturing firm (Quincy

Resource Group) for over fifteen years, he sold

the business at industry high valuations in a

structured financing deal. His successful tenure

at Quincy Resource Group produced industry

high margins and consistent year-over-year,

double digit sales growth and profitability.

Page 6: Beaman Capital Group

Senior Partner

Nathan Beaman is a Senior Partner at Beaman

Capital Group. A seasoned financial analyst and

finance professional, Mr. Beaman develops

financial, valuation, and cash flow investment

models that capitalize on a variety of economic,

financial, fundamental, and technical metrics

designed to maximize investment returns. Mr.

Beaman is also a graduate of Texas Tech

University’s Rawls College of Business where he

earned his Master of Science in Finance and the

University of Mississippi’s School of Business

where he completed his MBA. He also graduated

Magna Cum Laude with a Bachelor of Science in

Finance and was elected to Beta Gamma Sigma

for his academic achievements.

Nathan C. BeamanSenior Partner

Page 7: Beaman Capital Group

CAPABILITIES

Page 8: Beaman Capital Group

“Venture Capital & Private Equity” would be an investment in which capital is provided to early stage companies in need of liquid equity capital for growth and would normally be structured as a preferred stock security with a board seat for a partner of the firm.

“Mezzanine Financing” investment slightly differs from traditional forms of direct private equity financiers due to its preference for investments in debt-like securities. The higher seniority in the investment’s debt structure above that of pure equity (capital structure) may be attractive due to dividend payments and equity warrants.

“Consulting Services” provides strategic financial modeling services to enhance the growth, profitability, and risk management within the operational activities of the firm’s clients. This also relates to the strategic innovative capabilities of the client and its ability to continue growing through its competitive advantages and core competencies through an improved operational structure.

Products & Services

Page 9: Beaman Capital Group

MODELING EXAMPLES

Page 10: Beaman Capital Group

Empirical Performance

Page 11: Beaman Capital Group

Dynamic Rolling Alpha

Page 12: Beaman Capital Group

Covariance-Variance Matrix

Page 13: Beaman Capital Group

Interest Rate Forecast

Rates Average Rates exp(-t*aver(r))t = 0 t = 1 t = 2 t = 3 t = 4 t = 5 t = 1 t = 2 t = 3 t = 4 t = 5 t = 1 t = 2 t = 3 t = 4 t = 54.90% 5.50% 7.10% 6.80% 7.50% 9.20% 5.20% 5.83% 6.08% 6.36% 6.83% 0.94933 0.88988 0.83339 0.77538 0.71059

4.90% 4.40% 3.70% 5.60% 6.20% 6.90% 4.65% 4.33% 4.65% 4.96% 5.28% 0.95456 0.91698 0.86979 0.82004 0.76785

4.90% 3.10% 2.60% 5.10% 6.70% 4.80% 4.00% 3.53% 3.93% 4.48% 4.53% 0.96079 0.93177 0.88892 0.83594 0.79719

4.90% 5.00% 6.10% 6.90% 6.90% 6.00% 4.95% 5.33% 5.73% 5.96% 5.97% 0.95171 0.89883 0.84219 0.78789 0.74205

4.90% 4.40% 5.50% 6.10% 5.80% 6.50% 4.65% 4.93% 5.23% 5.34% 5.53% 0.95456 0.90604 0.85492 0.80767 0.75831

Year 1 Year 2 Year 3 Year 4 Year 5

Strike: 4.70%

t= 1 2 3 4 5PV along

path0.008 0.021 0.018 0.022 0.032 0.10010.000 0.000 0.008 0.012 0.017 0.03700.000 0.000 0.004 0.017 0.001 0.02110.003 0.013 0.019 0.017 0.010 0.06090.000 0.007 0.012 0.009 0.014 0.0418

Price of cap per $1 notional 0.0522$

Shown in the highlighted cell in the lower left is the solution for the price of a five-year interest rate cap on the short-term rate with a strike rate of $0.047. In this context, an interest rate cap is a derivative in which the buyer receives payments at the end of each period in which the interest rate exceeds the agreed strike price; this is commonly used by investors in the fixed income markets to hedge against interest rate fluctuations by using "caps" and "floors" thereby creating a fixed interest rate through a variable rate.

A zero-coupon bond is a bond bought at a price discount that is less than its face value and is repaid with the face value repaid at the time of maturity. However, it does not make periodic interest payments, which in turn, creates an additional discount because there are no periodic cash flows. The prices for the zero coupon bonds (Years 1 through Year 5) are highlighted on the right

Zero-bond prices (per $1 notional): $0.7552$0.8054$0.8578$0.9087$0.9542

Page 14: Beaman Capital Group

Estimated Yield Curve

t #1 D(t) #2 D(t) #1 Spot Rate #2 Spot Rate #1 Par Yield #2 Par Yield#1 Forward

(6mo)#2 Forward

(6mo)0.50 1.001 0.999 -0.28% 0.13% -0.28% 0.13%1.00 1.000 0.997 0.02% 0.28% 0.02% 0.28% 0.33% 0.43%1.50 0.995 0.993 0.31% 0.45% 0.31% 0.45% 0.90% 0.78%2.00 0.988 0.987 0.59% 0.63% 0.59% 0.63% 1.44% 1.17%2.50 0.979 0.980 0.86% 0.82% 0.86% 0.82% 1.94% 1.59%3.00 0.967 0.970 1.12% 1.02% 1.11% 1.01% 2.41% 2.02%3.50 0.953 0.958 1.37% 1.22% 1.35% 1.21% 2.85% 2.45%4.00 0.938 0.945 1.60% 1.43% 1.58% 1.42% 3.26% 2.88%4.50 0.921 0.929 1.83% 1.64% 1.80% 1.62% 3.63% 3.30%5.00 0.903 0.912 2.04% 1.84% 2.00% 1.81% 3.98% 3.71%5.50 0.884 0.894 2.25% 2.05% 2.19% 2.01% 4.29% 4.09%6.00 0.865 0.875 2.44% 2.25% 2.38% 2.19% 4.58% 4.45%6.50 0.844 0.854 2.62% 2.44% 2.55% 2.37% 4.84% 4.78%7.00 0.823 0.833 2.80% 2.63% 2.71% 2.54% 5.07% 5.07%7.50 0.802 0.811 2.96% 2.81% 2.85% 2.71% 5.28% 5.33%8.00 0.781 0.789 3.12% 2.98% 2.99% 2.86% 5.47% 5.55%8.50 0.759 0.767 3.26% 3.14% 3.12% 3.00% 5.63% 5.73%9.00 0.738 0.746 3.40% 3.29% 3.24% 3.13% 5.77% 5.88%9.50 0.717 0.724 3.53% 3.43% 3.36% 3.25% 5.88% 5.97%10.00 0.696 0.703 3.65% 3.56% 3.46% 3.37% 5.98% 6.03%10.50 0.676 0.682 3.77% 3.68% 3.56% 3.47% 6.06% 6.06%11.00 0.656 0.662 3.87% 3.78% 3.65% 3.56% 6.12% 6.04%11.50 0.636 0.643 3.97% 3.88% 3.73% 3.63% 6.16% 6.00%12.00 0.617 0.624 4.06% 3.96% 3.80% 3.71% 6.19% 5.92%12.50 0.598 0.607 4.15% 4.04% 3.87% 3.77% 6.20% 5.82%13.00 0.580 0.590 4.23% 4.10% 3.94% 3.82% 6.20% 5.70%13.50 0.563 0.574 4.30% 4.16% 3.99% 3.87% 6.19% 5.56%14.00 0.546 0.559 4.37% 4.20% 4.05% 3.90% 6.16% 5.42%14.50 0.530 0.544 4.43% 4.24% 4.09% 3.94% 6.13% 5.28%15.00 0.514 0.531 4.48% 4.27% 4.14% 3.96% 6.09% 5.14%15.50 0.499 0.518 4.53% 4.29% 4.18% 3.99% 6.04% 5.02%16.00 0.485 0.505 4.58% 4.31% 4.21% 4.00% 5.98% 4.91%16.50 0.471 0.493 4.62% 4.33% 4.25% 4.02% 5.92% 4.82%17.00 0.457 0.482 4.65% 4.34% 4.27% 4.03% 5.85% 4.77%17.50 0.445 0.471 4.69% 4.35% 4.30% 4.05% 5.78% 4.74%18.00 0.432 0.460 4.71% 4.36% 4.32% 4.06% 5.71% 4.76%18.50 0.420 0.449 4.74% 4.38% 4.34% 4.07% 5.64% 4.81%19.00 0.409 0.438 4.76% 4.39% 4.36% 4.09% 5.57% 4.91%19.50 0.398 0.427 4.78% 4.41% 4.38% 4.10% 5.50% 5.05%20.00 0.388 0.417 4.80% 4.43% 4.39% 4.12% 5.43% 5.23%20.50 0.377 0.406 4.81% 4.45% 4.41% 4.14% 5.37% 5.45%

0.000

0.200

0.400

0.600

0.800

1.000

1.200

0.00 5.00 10.00 15.00 20.00 25.00 30.00

#1 D(t) #2 D(t)

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

0.00 5.00 10.00 15.00 20.00 25.00 30.00

#1 Spot Rate #2 Spot Rate

-1.00%

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

0.00 5.00 10.00 15.00 20.00 25.00 30.00

#1 Par Yield #2 Par Yield

Page 15: Beaman Capital Group

Valuation

2003 2004 2005 2006 2007 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022Revenues

Media Networks Parks and Resorts Studio Entertainment Consumer Products

Segment Operating IncomeMedia Networks Parks and Resorts Studio Entertainment Consumer Products

Shares Outstanding 1,808

Average Growth Rate R (03-07) 7.61%Average Growth Rate R (03-11) 5.58%Average Growth Rate OI (03-07) 23.99%Average Growth Rate OI (03-11) 13.69%

Estimated Growth Rate 10.75%

Current Price to OI Per Share 15301.62

Net Present Value $55.63$0.00

$2.00

$4.00

$6.00

$8.00

$10.00

$12.00

$14.00

$16.00

2003 2004 2005 2006 2007 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

| R2 = 0.9742 | y = 1411.6x 506.07 Growth in Operating Income Forecast

FACTOR SCOREPositive Return on Assets 1Positive Operating Cash Flow 1Increasing Return on Assets 1Quality of Earnings 1Long-Term Debt v. Assets 0Current Ratio 1Change in Shares 1Increasing Gross Margins 1Increasing Asset Turnover 1

TOTAL 8

Inputs

Current Earnings Per Share $2.56

Current Payout Ratio 23.44%

Cost of Equity 11.90% Yes

Beta of Stock 1.39

Risk-Free Rate 3.13%

Risk Premium 5.90%

Expected Growth Rate = 10.75%

Assumptions

Current Dividends Per Share $0.60

Cost of Equity 11.90%

Expected Growth Rate 10.75%

Stock Price Valuation

Gordon Growth Model Value $57.78

Page 16: Beaman Capital Group

THANK YOU

Page 17: Beaman Capital Group

Email: [email protected]

Phone: (214) 461-2987

Office: McKinney Ave

Location: Dallas | TEXAS | USA

LinkedIn: www.LinkedIn.com/BeamanCapitalGroup

Facebook: www.Facebook.com/BeamanCapitalGroup

Contact

Page 18: Beaman Capital Group

MCKINNEY AVEDALLAS, TX 75201