PEERCOMPS, INC.
LUTZ, FLORIDA

• Seller’s Discretionary Earnings (SDE) The PeerComps valuation tool uses the following approaches: Asset Approach – for asset intensive businesses and/or holding companies, the asset approach is sometimes used. It is typically calculated as adjusted assets less adjusted liabilities. Market Approach – using the PeerComps database, the user can search for specific comparable transactions based on NAICS, revenue or profit size, keyword, and various other variables. The market approach uses a price to revenue, price to SDE, and price to EBITDA calculations. This method can be weighted when good comparable transactions are available. Income Approach – PeerComps uses a discounted future cash flow method starting with EBITDA and using a build up discount / capitalization rate specific to EBITDA cash flow. The discount rate is based on risk variables that tend to have the most impact on values of small businesses. WHO WE ARE PeerComps was created by GCF Valuation, a full service business valuation firm located in Tampa, Florida. GCF Valuation specializes in the valuation of small to mid-market businesses for mergers & acquisitions, lending, estate planning, ESOP, divorce and litigation support. GCF Valuation and its principals, collectively, have more than 50 years of relevant experience in the areas of investment banking, corporate development and business valuation. Steve Mize, ASA is the managing partner of GCF Valuation and is responsible for Business Valuations and matters of litigation support. He is an Accredited Senior Appraiser of the American Society of Appraisers in Business Valuation and is an experienced business valuation professional with concentration in the development and implementation of valuation and financial strategies. He has been directly involved in numerous business valuation engagements for estate and gift tax purposes, feasibility analysis, mergers and acquisitions, dissenting shareholder actions, Employee Stock Ownership Plans, as well as consulting engagements related to fairness opinions, private transactions, and value improvement. Mr. Mize engages with accountants, attorneys, commercial bank lenders, and bank trust officers across the United States for purposes of Business Valuation, Value Improvement, and related topics. His professional affiliations include the American Society of Appraisers (ASA) and the Institute of Business Appraisers (IBA). An All-Inclusive Annual membership provides a single-user* 12-months of unlimited access to both our business valuation tool and comp search database. With this option you can do as many valuations and comps searches as you wish without any restrictions. Don’t need the valuation calculator? A Comps Search Annual Membership provides a single-user* 12-months of unlimited access to our comps search database. With this option, you can search our comps database as much as you wish without any restrictions, but YOU WILL NOT have access to the business valuation tool. One-Time Business Valuation ** • Seller’s Discretionary Earnings (SDE) The PeerComps valuation tool uses the following approaches: Asset Approach – for asset intensive businesses and/or holding companies, the asset approach is sometimes used. It is typically calculated as adjusted assets less adjusted liabilities. Market Approach – using the PeerComps database, the user can search for specific comparable transactions based on NAICS, revenue or profit size, keyword, and various other variables. The market approach uses a price to revenue, price to SDE, and price to EBITDA calculations. This method can be weighted when good comparable transactions are available. Income Approach – PeerComps uses a discounted future cash flow method starting with EBITDA and using a build up discount / capitalization rate specific to EBITDA cash flow. The discount rate is based on risk variables that tend to have the most impact on values of small businesses. WHO WE ARE PeerComps was created by GCF Valuation, a full service business valuation firm located in Tampa, Florida. GCF Valuation specializes in the valuation of small to mid-market businesses for mergers & acquisitions, lending, estate planning, ESOP, divorce and litigation support. GCF Valuation and its principals, collectively, have more than 50 years of relevant experience in the areas of investment banking, corporate development and business valuation. Steve Mize, ASA is the managing partner of GCF Valuation and is responsible for Business Valuations and matters of litigation support. He is an Accredited Senior Appraiser of the American Society of Appraisers in Business Valuation and is an experienced business valuation professional with concentration in the development and implementation of valuation and financial strategies. He has been directly involved in numerous business valuation engagements for estate and gift tax purposes, feasibility analysis, mergers and acquisitions, dissenting shareholder actions, Employee Stock Ownership Plans, as well as consulting engagements related to fairness opinions, private transactions, and value improvement. Mr. Mize engages with accountants, attorneys, commercial bank lenders, and bank trust officers across the United States for purposes of Business Valuation, Value Improvement, and related topics. His professional affiliations include the American Society of Appraisers (ASA) and the Institute of Business Appraisers (IBA). An All-Inclusive Annual membership provides a single-user* 12-months of unlimited access to both our business valuation tool and comp search database. With this option you can do as many valuations and comps searches as you wish without any restrictions. Don’t need the valuation calculator? A Comps Search Annual Membership provides a single-user* 12-months of unlimited access to our comps search database. With this option, you can search our comps database as much as you wish without any restrictions, but YOU WILL NOT have access to the business valuation tool. One-Time Business Valuation **