a:10:{s:2:"id";s:2:"27";s:12:"cms_headline";s:28:"The Alaris Capital Advantage";s:7:"content";s:5374:"<h2>Illustrative Transaction Analysis of an Alaris Partnership with Company XYZ ($000&rsquo;s)</h2>

<h3>Key Assumptions:</h3>

<ul>
	<li>$50 million contribution on December 31, 2013 in exchange for a first year distribution from Company XYZ of $7.5 million.</li>
	<li>The annual distribution to Alaris will reset at the end of 2014 based on the performance of Company XYZ&rsquo;s revenue in 2014 vs 2013.</li>
	<li>There is a 6% +/- collar on Company XYZ&rsquo;s distribution to Alaris.</li>
</ul>

<table align="center" style="font-size: 0.8em; line-height: 1.75em;">
	<tbody>
		<tr>
			<td colspan="7" style="text-align: center;"><strong>Proforma</strong></td>
		</tr>
		<tr>
			<td>Summary Pro Forma Income Statement</td>
			<td style="text-align: center;">2013A</td>
			<td style="text-align: center;">2014E</td>
			<td style="text-align: center;">2015E</td>
			<td style="text-align: center;">2016E</td>
			<td style="text-align: center;">2017E</td>
			<td style="text-align: center;">2018E</td>
		</tr>
		<tr>
			<td>Revenue</td>
			<td style="text-align: right;">$100,000</td>
			<td style="text-align: right;">$115,000</td>
			<td style="text-align: right;">$138,000</td>
			<td style="text-align: right;">$132,480</td>
			<td style="text-align: right;">$137,779</td>
			<td style="text-align: right;">$158,446</td>
		</tr>
		<tr>
			<td style="padding-left:10px">% change</td>
			<td>&nbsp;</td>
			<td style="text-align: right;">15.0%</td>
			<td style="text-align: right;">20.0%</td>
			<td style="text-align: right;">-4.00%</td>
			<td style="text-align: right;">4.0%</td>
			<td style="text-align: right;">15.0%</td>
		</tr>
		<tr>
			<td>EBITDA</td>
			<td style="text-align: right;">30,000</td>
			<td style="text-align: right;">34,500</td>
			<td style="text-align: right;">41,400</td>
			<td style="text-align: right;">39,744</td>
			<td style="text-align: right;">41,334</td>
			<td style="text-align: right;">47,534</td>
		</tr>
		<tr>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
			<td>&nbsp;</td>
		</tr>
		<tr>
			<td style="padding-left:10px">Alaris Distribution</td>
			<td style="text-align: right;">NA</td>
			<td style="text-align: right;">7,500</td>
			<td style="text-align: right;">7,950</td>
			<td style="text-align: right;">8,427</td>
			<td style="text-align: right;">8,090</td>
			<td style="text-align: right;">8,413</td>
		</tr>
		<tr>
			<td style="padding-left:20px">% change in Alaris Distribution (collar of +/- 6%)</td>
			<td style="text-align: right;">&nbsp;</td>
			<td style="text-align: right;">NA</td>
			<td style="text-align: right;">6.0%</td>
			<td style="text-align: right;">6.0%</td>
			<td style="text-align: right;">-4.0%</td>
			<td style="text-align: right;">4.0%</td>
		</tr>
		<tr>
			<td>Cash Flow - Post Alaris Distribution</td>
			<td style="text-align: right;">$30,000</td>
			<td style="text-align: right;">$27,000</td>
			<td style="text-align: right;">$33,450</td>
			<td style="text-align: right;">$31,317</td>
			<td style="text-align: right;">$33,244</td>
			<td style="text-align: right;">$39,120</td>
		</tr>
		<tr>
			<td style="padding-left:10px">% of economic interest retained by founders/management</td>
			<td style="text-align: right;">100%</td>
			<td style="text-align: right;">78%</td>
			<td style="text-align: right;">81%</td>
			<td style="text-align: right;">79%</td>
			<td style="text-align: right;">80%</td>
			<td style="text-align: right;">82%</td>
		</tr>
		<tr>
			<td style="padding-left:10px">% of common shares held by founders/management</td>
			<td style="text-align: right;">100%</td>
			<td style="text-align: right;">100%</td>
			<td style="text-align: right;">100%</td>
			<td style="text-align: right;">100%</td>
			<td style="text-align: right;">100%</td>
			<td style="text-align: right;">100%</td>
		</tr>
	</tbody>
</table>

<h3>Our economic participation in any of our Partnerships is:</h3>

<h4>Limited by a Collar</h4>

<p>The collar on the distribution limits Alaris&rsquo; participation in the growth of Company XYZ to 6% in 2015E instead of the 15% increase the company realized in its revenue for the 2014E vs 2013A periods.&nbsp; Similarly, because Alaris participates in both the up and downside performance of the business, a 4% decline in revenue in 2016E vs 2015E results in a 4% reduction of the Alaris distribution for 2017E.</p>

<h4>Limited to Organic Growth</h4>

<p>The Alaris distribution is limited to changes based on the % change in organic top-line performance. If Company XYZ was to make an acquisition, the gross revenue from that acquisition would not be included until it can be considered an &ldquo;organic&rdquo; part of the business.</p>

<h4>Limited in the Long Term</h4>

<p>If Company XYZ expects to realize growth over a 5 year period, the company will maintain a higher economic interest in the business under the Alaris structure than could be maintained with a traditional equity provider due to Alaris&rsquo; limited participation in growth. The percentage of economic interest retained by the Company XYZ increases from 78% in 2014E to 82% in 2018E.</p>

<hr />
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