$Beaman - Myths Mystic and Mistakes - Role of Global Mindset
Beaman Capital Group
-
Upload
mbeaman1959 -
Category
Career
-
view
411 -
download
1
Transcript of Beaman Capital Group
Beaman Capital Group
Private Equity | Venture Capital | Mezzanine | Consulting
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
THE FIRM
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
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.
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
CAPABILITIES
“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
MODELING EXAMPLES
Empirical Performance
Dynamic Rolling Alpha
Covariance-Variance Matrix
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
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
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
THANK YOU
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
MCKINNEY AVEDALLAS, TX 75201