a:10:{s:2:"id";s:2:"27";s:12:"cms_headline";s:28:"The Alaris Capital Advantage";s:7:"content";s:3922:"<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>

<p>&nbsp;</p>

<table align="center" border="1" cellpadding="1" cellspacing="1" style="width: 500px;">
	<tbody>
		<tr>
			<td>Summary Pro Forma Income Statement</td>
			<td>2013A</td>
			<td>2014E</td>
			<td>2015E</td>
			<td>2016E</td>
			<td>2017E</td>
			<td>2018E</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>Revenue</td>
			<td>$100,000</td>
			<td>$115,000</td>
			<td>$138,000</td>
			<td>$132,480</td>
			<td>$137,779</td>
			<td>$158,446</td>
		</tr>
		<tr>
			<td>% change</td>
			<td>&nbsp;</td>
			<td>15.0%</td>
			<td>20.0%</td>
			<td>-4.00%</td>
			<td>4.0%</td>
			<td>15.0%</td>
		</tr>
		<tr>
			<td>EBITDA</td>
			<td>30,000</td>
			<td>34,500</td>
			<td>41,400</td>
			<td>39,744</td>
			<td>41,334</td>
			<td>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>Alaris Distribution</td>
			<td>NA</td>
			<td>7,500</td>
			<td>7,950</td>
			<td>8,427</td>
			<td>8,090</td>
			<td>8,413</td>
		</tr>
		<tr>
			<td>% change in Alaris Distribution (collar of +/- 6%)</td>
			<td>&nbsp;</td>
			<td>NA</td>
			<td>6.0%</td>
			<td>6.0%</td>
			<td>-4.0%</td>
			<td>4.0%</td>
		</tr>
		<tr>
			<td>Cash Flow - Post Alaris Distribution</td>
			<td>$30,000</td>
			<td>$27,000</td>
			<td>$33,450</td>
			<td>$31,317</td>
			<td>$33,244</td>
			<td>$39,120</td>
		</tr>
		<tr>
			<td>% of economic interest retained by founders/management</td>
			<td>100%</td>
			<td>78%</td>
			<td>81%</td>
			<td>79%</td>
			<td>80%</td>
			<td>82%</td>
		</tr>
		<tr>
			<td>% of common shares held by founders/management</td>
			<td>100%</td>
			<td>100%</td>
			<td>100%</td>
			<td>100%</td>
			<td>100%</td>
			<td>100%</td>
		</tr>
	</tbody>
</table>

<h3>&nbsp;</h3>

<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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