LBO of Alarm ServicesBalancing Risk and Reward

Nicolas LindstromSamuel NadeauFranco Perugini

Mandate

Mandate Rationale Valuation Implementation Conclusion

North Village Capital purchase of AlarmServce Inc.

Debt Structure Strategic Fit Return

Mandate

Mandate Rationale Valuation Implementation Conclusion

Mandate

Mandate Rationale Valuation Implementation Conclusion

Sales secured by contracts

• Low Customer Attrition

Monthly Payment Plan

• Stable Cashflow

Low Capital Intensively

• Low drain on cash

Industry is a good fit for an LBO

How NVC can add Value

Mandate Rationale Valuation Implementation Conclusion

Expand to new geographic areas

Focus on higher-margin accounts

Reduce operating cost

Eliminate cost of being public

$2 Million Dollars by year 4

NWC can add value to the company through their involvment

Decision of debt Level

Mandate Rationale Valuation Implementation Conclusion

Return

Default Risk

Probability to Receive

Financing

Decision of debt Level

Mandate Rationale Valuation Implementation Conclusion

No leverage Medium Leverage High Leverage

Return Low Medium High

Default Low Medium High

Probability to Receive

Financing High High Medium

How NVC can add Value

Mandate Rationale Valuation Implementation Conclusion

Good Fit

Eliminate cost of being public

Valuation

Acquisition Timeline

Mandate Rationale Valuation Implementation Conclusion

2009Q4 Q1 Q2 Q3 Q4

LOIAccess data roomDue DiligenceLegal docsSign SPAClose deal

2010

Focus of due diligence will be on empolyee retention

Sale Timeline

Mandate Rationale Valuation Implementation Conclusion

Q3 Q4 Q1 Q2 Q3 Q4Invite banks to pitchReview pitchesSelect advisorsPrepare CIMSign NDALOIAccess data roomDue DiligenceLegal docsSign SPAClose deal

2013 2014

Industry is a good fit for an LBO