<PAGE> 1
Exhibit 99.C.2
PRESENTATION TO THE BOARD OF DIRECTORS OF
GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
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STRICTLY CONFIDENTIAL
AUGUST 14, 2000
[HOULIHAN HOULIHAN LOKEY HOWARD & ZUKIN CAPITAL
LOKEY INVESTMENT BANKERS
LOGO] 1750 Tysons Boulevard, Suite 650
McLean, VA 22102
Tel. (703) 847-5225 - Fax: (703) 848-9667 - http://www.hlhz.com
Washington, D.C. - Los Angeles - Chicago - San Francisco -
New York - Minneapolis - Dallas - Atlanta - Toronto - Seoul
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
TABLE OF CONTENTS
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Executive Summary .................................................. A
Scope of Engagement
Summary of Recent Trading Activity
Summary of Analysis Completed
Summary of Due Diligence
Limiting Conditions
Company Overview ................................................... B
Company Profile
Current Ownership Profile
Summary Financial Statistics
Analysis of Working Capital/Liquidity
Other Financial Considerations
Review of FutureCo Transaction ..................................... C
Background/Description
Price/Value Considerations
Other Comments
Independent Valuation Assessment of GZA ............................ D
Public Company Approach
Merger & Acquisitions Transactions Approach
Discounted Cash Flow Approach
Analysis of Control Premiums
Summary of Independent Valuation Assessment
Consideration of 3rd Party Alternatives ............................ E
Timeline
Summary of Activities
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EXECUTIVE SUMMARY
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
EXECUTIVE SUMMARY
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SCOPE OF ENGAGEMENT
We understand that the Board of Directors ("Board") of GZA GeoEnvironmental
Technologies, Inc. ("GZA" or the "Company") has received an offer from
FutureCo. Corp. ("FutureCo") to purchase all of the shares of common stock
of the Company held by the public shareholders. Such transaction is
referred to herein as the "Transaction". Houlihan Lokey Howard & Zukin
Capital ("Houlihan Lokey") has been retained to act as financial advisors
to the Special Committee to the Board regarding (i) negotiations with a
management investment group (the "MBO Group") for a potential acquisition
of 100% of the outstanding common stock of the Company and certain related
transactions, (ii) a possible sale or merger of the Company involving all
or a substantial part of the business, assets or equity interests of the
Company and/or its subsidiaries and affiliates in one or more transactions
with an unaffiliated third party; and, if and when requested by the Special
Committee; (iii) providing an opinion to the Special Committee and party;
and, if and when requested by the Special Committee; (iii) providing an
opinion to the Special Committee and GZA's Board that the Transaction (or
an alternative transaction) is fair to GZA's common stockholders from a
financial point of view.
SUMMARY OF RECENT TRADING ACTIVITY
The following table highlights the recent trading activity for the
Company's common stock.
52 Week High $6.38
52 Week Low $3.50
Current Stock Price(1) $6.00
Stock Price Prior to March 31, 2000 $5.00
Thirty Day Average(2) $4.57
Three Month Average(2) $4.39
Six Month Average(2) $4.22
One Year Average(2) $4.31
----------
(1) As of August 3, 2000.
(2) GZA's press release on March 31, 2000 pertained to the formation of
the Special Committee and ongoing discussions with management.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
EXECUTIVE SUMMARY
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SUMMARY OF ANALYSIS COMPLETED
In assessing the fairness of the FutureCo proposal, we have (i) analyzed
the historical trading value of the Company's publicly traded equity
securities, (ii) independently valued the common equity of the Company
using widely accepted valuation methodologies, and (iii) considered
alternative transactions with prospective third party candidates.
SUMMARY OF DUE DILIGENCE
In connection with our analyses, we have made such reviews, analyses and
inquiries as we have deemed necessary and appropriate under the
circumstances. Among other things, we have:
1. reviewed the Company's audited financial statements on Form 10-K for
the five fiscal years ended February 28, 2000, and internal Company
financials for the period ended May 31, 2000, which the Company's
management has identified as being the most current financial
statements available;
2. met with certain members of the senior management of the Company to
discuss the operations, financial condition, future prospects and
projected operations and performance of the Company;
3. reviewed the historical market prices and trading volume for the
Company's publicly traded securities;
4. reviewed certain other publicly available financial data for certain
companies that we deem comparable to the Company, and publicly
available prices and premiums paid in other transactions that we
considered similar to the Transaction; and
5. conducted such other studies, analyses and inquiries as we have
deemed appropriate.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
EXECUTIVE SUMMARY
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LIMITING CONDITIONS
We have relied upon and assumed, without independent verification, that the
financial forecasts and projections provided to us, and adjusted based on
discussions with management, have been reasonably prepared and reflect the
best currently available estimates of the future financial results and
condition of the Company, and that there has been no material change in the
assets, financial condition, business or prospects of the Company since the
date of the most recent financial statements made available to us.
We have not independently verified the accuracy and completeness of the
information supplied to us with respect to the Company and do not assume
any responsibility with respect to it. We have not made any physical
inspection or independent appraisal of any of the properties or assets of
the Company. Our analysis is necessarily based on business, economic,
market and other conditions as they exist and can be evaluated by us at the
date of this presentation.
Any summary of, or reference to, this presentation, any verbal presentation
with respect thereto, or other references to Houlihan Lokey in connection
with the Transaction, will in each instance be subject to Houlihan Lokey's
prior review and written approval (which shall not be unreasonably
withheld). This presentation will not be included in, summarized or
referred to in any manner in any materials distributed to the public or the
securityholders of the Company, or filed with or submitted to any
governmental agency, without Houlihan Lokey's express, prior written
consent (which shall not be unreasonably withheld). Houlihan Lokey's
presentation will not be used for any purpose other than in connection with
the Transaction.
CONCLUSION
In summary, it is our conclusion that the consideration to be received by
the common shareholders of the Company, pursuant to the Transaction, is
fair from a financial point of view.
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COMPANY OVERVIEW
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
COMPANY OVERVIEW
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COMPANY PROFILE
GZA provides geotechnical engineering, environmental consulting,
environmental remediation and information management systems to industrial,
commercial, financial, public service and government clients. The Company's
geotechnical services involve the evaluation of soil, rock and groundwater
conditions for the design and construction of buildings, highways, tunnels,
dams, piers, and other structures. The Company's environmental services
range from the initial assessment and evaluation of contaminated sites to
the design, construction and operation of remediation systems to treat,
control or remove contamination.
- GZA went public in 1989 at $12.00 per share. Company's stock is
currently traded on the Nasdaq NM.
- Company's stock is thinly traded without meaningful equity analyst
following.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
COMPANY OVERVIEW
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CURRENT OWNERSHIP PROFILE
GZA CURRENT BENEFICIAL OWNERSHIP(1)
MAJOR SHAREHOLDERS
NUMBER OF % FULLY % OUTSTANDING
SHARES OWNED DILUTED(1) SHARES(2)
------------ ---------- -------------
Heartland Advisors 452,500 10.6% 12.2%
William Zoino 409,368 9.6% 11.0%
Franklin Resources, Inc. 232,000 5.4% 6.3%
Acquisitor 219,200 5.1% 5.9%
Dimensional Fund Advisors 182,373 4.3% 4.9%
--------- ---- ----
SUBTOTAL 1,495,441 35.0% 40.4%
Donald T. Goldberg(3) 107,121 2.5% 2.7%
(1) Per information provided by Company management -- inclusive of stock
options
(2) Based on 3,705,122 shares outstanding as of June 30, 2000.
(3) This number of shares excludes 50,000 shares held by Goldberg family
trusts
* Management and employees own approximately 30% of total shares
outstanding.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
COMPANY OVERVIEW
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SUMMARY FINANCIAL STATISTICS
GZA FINANCIAL STATISTICS SUMMARY
($ millions) FISCAL YEAR
LTM ----------------------------
5/31/00 2000 1999 1998 1997
-------- ---- ---- ---- ----
Adjusted New Revenue 44.4 43.3 38.3 36.0 38.2
Annual Net Revenue Growth 15.9% 13.2% 6.4% -5.8% NA
Adjusted Operating Income 3.3 3.1 2.7 2.1 1.5
Adjusted Operating Income Margin 7.5% 7.1% 7.2% 5.9% 3.9%
Annual Operating Income Growth 20.5% 11.5% 28.4% 45.3% NA
Adjusted EBITDA 5.1 4.7 4.0 3.5 3.4
Adjusted EBITDA Margin 11.4% 11.0% 10.6% 9.6% 8.8%
Annual EBITDA Growth 25.3% 17.4% 16.6% 3.1% NA
- GZA historical revenue growth has been below industry averages
- Profitability has been above industry averages
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
COMPANY OVERVIEW
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ANALYSIS OF WORKING CAPITAL AND OTHER LIQUID ASSETS
SUMMARY OF CASH AND WORKING CAPITAL
5/00 2/00 2/99 2/98
---- ---- ---- ----
Cash/Marketable Securities 7,043 9,795 4,731 8,113
Accounts Receivable/WIP 21,637 19,593 19,521 18,684
Current Assets 30,587 31,002 27,851 27,959
Accounts Payable & Accruals 8,097 10,474 8,676 9,020
Current Liabilities 11,628 12,226 10,300 10,593
Net Working Capital 11,916 8,981 12,820 9,253
AR Days Outstanding 106 117 132 115
- Cash above normal levels at February 29, 2000. GZA appears to have $6MM-
$7MM of "extra" liquidity
- Some improvement has occurred in AR/WIP Days Outstanding since mid-1999
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
COMPANY OVERVIEW
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OTHER FINANCIAL CONSIDERATIONS
($000s)
ISSUES/ITEMS ESTIMATED COST RANGE(1)
------------ -----------------------
Headquarters Relocation(2) 0 -- <1,000>
Closure of ISD <300> -- <500>
Closure of Dallas Office <100> -- <150>
Other <200> -- <300>
Sommerville Brownfield Sale 1,000 -- 500
----- ---
TOTALS 400 -- <1,450>
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(1) Ranges are on an after-tax basis
(2) Low end of range considers potential benefits of such items
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REVIEW OF FUTURECO TRANSACTION
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
REVIEW OF FUTURECO TRANSACTION
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BACKGROUND/DESCRIPTION OF PROPOSAL
Over the years, a few companies have express interest in acquiring GZA. For
a number of reasons, discussions with none of the parties ever resulted a
definitive offer or proposal. Earlier this year, in February 2000, the
Company received an unsolicited expression of interest, based on a number
of assumptions, to purchase GZA for $5.00 per share. This proposal was
rejected as inadequate. The unsolicited proposal prompted (i) interest in
liquidity from GZA's institutional shareholders, and (ii) renewed interest
in a management buyout ("MBO") from GZA's senior management.
During March and April of 2000, FutureCo communicated its interest in an
MBO to the Special Committee, ultimately resulting in the GZA Board's
approval of and resulting execution of a letter of intent ("LOI") on May
16, 2000. Among other things, the LOI called for FutureCo to purchase GZA's
common stock for $6.45 per share. As a result of some interim developments
regarding, among other things, the closure of GZA's Information Services
Division, the purchase price was reduced to $6.40.
According to the terms in the Stock Purchase Agreement, FutureCo Will
acquire the stock of the public stockholders for $6.40 per share and
Company management would roll its current equity interest into FutureCo.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
REVIEW OF FUTURECO TRANSACTION
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PRICE/VALUE OBSERVATIONS
FUTURECO TRANSACTION VALUATION ANALYSIS
Offer Per Share $6.40
Total Fully Diluted Shares Outstanding (000s) 4,274
-----
Equity Value ($000s) $27,353
Less: Excess Cash and Option Proceeds 9,140 -- 8,140
Less: Other Considerations(1) 1,450 -- <400>
----- -----
Equity Value (Less Cash) 16,763 -- 19,613
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Adjusted Fundamentals Implied Multiples
--------------------- -----------------
Revenue 44,371 0.38x -- 0.44x
EBITDA 5,069 3.3x -- 3.9x
EBIT 3,310 5.1x 5.9x
Book Value 18,669 0.90x -- 1.05x
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(1) See page 8
- Price is a substantial premium to the Company's stock prior to
disclosure of discussions
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
REVIEW OF FUTURECO TRANSACTION
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OTHER COMMENTS
- Transaction is a management buyout with current management
- MBO's financial advisors have strong interest in and are comfortable
with FutureCo's financing for the Transaction.
- Definitive agreement contains modest break-up cost reimbursement (up to
$750,000) to FutureCo if superior proposal is accepted.
- Definitive agreement contains a "fiduciary out" clause regarding
superior proposals which may arise prior to closing.
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INDEPENDENT VALUATION ASSESSMENT OF GZA
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
INDEPENDENT VALUATION ASSESSMENT OF GZA
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PUBLIC COMPANY APPROACH
This approach is based on the premise that the value of a private company
can be estimated by analyzing the prices paid by investors for shares of
publicly traded companies with similar characteristics.
Value multiples are determined based on the ratios of current market
valuations to operating performance measures such as Revenue; Earnings
Before Interest, Taxes, Depreciation and Amortization ("EBITDA"); and
Earnings Before Interest and Taxes ("EBIT"). By utilizing a variety of
derived multiples, one is able to "smooth out" any anomalies in a company's
operating performance.
The Market Capitalization Approach using publicly traded company evidence
has several key strengths: 1) it uses the actual value multiples that
investors are currently paying for ownership interests in public companies
with similar business activities, 2) the large number of public companies
in the United States facilitates availability of data, and 3) comparable
company histories are readily available, with complete, accurate, and
audited financial information.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
INDEPENDENT VALUATION ASSESSMENT OF GZA
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COMPARATIVE PUBLICLY TRADED COMPANY ANALYSIS
<TABLE>
<CAPTION>
GZA COMPARABLE COMPANY
FUNDAMENTAL MULTIPLE RANGE SELECTED INDICATED INDICATED
PRICING AS OF 8/2/00 $000 HIGH LOW MEDIAN MULTIPLE VALUES VALUE
------------- ------ ----------- ---- --- ------ -------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
I. DEBT-FREE HISTORICAL APPROACH
EV/Revenues
LTM 5/31/00 44,796 2.05 0.16 0.36 0.30 13,439 13,400
DV/EBIT
NTM NFY 3,417 15.3 4.2 6.3 4.5 15,377 15,100
LTM 5/31/00 3,310 22.2 2.7 9.9 4.5 14,895
EV/EBITDA
NTM NFY 5,107 12.5 3.4 5.2 3.5 17,873 17,800
LTM 5/31/00 5,069 13.2 1.9 8.4 3.5 17,742
EV/Assets
LTM 5/31/00 31,493(a) 2.65 0.33 0.55 0.50 15,747 15,700
INDICATED ENTERPRISE VALUE $15,900
II. LEVERAGED APPROACH
Price/Earnings
NTM NFY 2,047 12.6 3.8 7.1 8.5 17,400 17,100
LTM 5/31/00 1,985 42.4 4.2 21.7 8.5 16,873
Price/Cash Flow
NTM NFY 3,737 18.1 2.2 5.8 5.0 18,683 18,700
LTM 5/31/00 3,744 20.2 2.3 10.6 5.0 18,720
Price/Book Value of Equity
LTM 5/31/00 18,669(a) 10.61 0.54 1.05 1.00 18,669 18,700
INDICATED MARKETABLE MINORITY EQUITY VALUE RANGE (LEVERAGED APPROACH) $18,200
INDICATED VALUE RANGE
INDICATED MARKETABLE MINORITY EQUITY VALUE (DEBT-FREE AND LEVERAGED APPROACHES) 16,000 $18,000
ADD: CONTROL PREMIUM @ 10.0% - 25.0% 1,600 - 4,500
------ -------
INDICATED CONTROL EQUITY VALUE (ROUNDED) 17,600 - 22,500
ADD: CASH/WORKING CAPITAL 6,000 7,000
------ -------
INDICATED AGGREGATE EQUITY VALUE 23,600 - 29,500
====== =======
</TABLE>
a. Considers excess cash adjustment of $6.5 million
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
INDEPENDENT VALUATION ASSESSMENT OF GZA
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M&A TRANSACTION APPROACH
The use of comparable transactions for valuation purposes is based on the
premise that the value of a company can be estimated by analyzing the
prices paid by purchasers for controlling interests in businesses with
similar characteristics. Houlihan Lokey uses financial information from the
most comparable transactions to develop appropriate acquisition pricing
multiples to value the subject company.
While the use of comparable transactions for establishing valuation
criteria often does not provide quite as current a market view as the
public company analysis, it provides insights into the values paid for
controlling interests in companies.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
INDEPENDENT VALUATION ASSESSMENT OF GZA
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MARKET CAPITALIZATION APPROACH -- M&A TRANSACTION EVIDENCE
<TABLE>
<CAPTION>
COMPARABLE TRANSACTION
MULTIPLE RANGE SELECTED INDICATED
$000 HIGH LOW MEDIAN MULTIPLE VALUE
---- ---- --- ------ -------- ---------
<S> <C> <C> <C> <C> <C> <C>
DEBT-FREE HISTORICAL APPROACH
EV/Revenues
LTM 5/31/00 44,796 1.00 0.26 0.52 0.50 22,398
EV/EBIT
LTM 5/31/00 3,310 20.9 7.8 11.0 7.5 24,825
EV/EBITDA
LTM 5/31/00 5,069 12.0 4.6 8.5 4.5 22,811
EV/Assets
LTM 5/31/00 31,493 2.45 0.68 0.93 0.80 25,194
INDICATED ENTERPRISE VALUE (Rounded) $22,400 - $25,200
ADD: EFFECT OF EXCESS CASH ADJUSTMENT (Rounded) 6,000 - 7,000
------- -------
CONCLUDED EQUITY VALUE 28,400 - 32,200
======= =======
</TABLE>
* This analysis incorporates all transactions except the acquisition of
Harding Lawson which is analyzed separately.
- Evidence incorporates analysis of nineteen industry transaction during
1996 - 2000.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
INDEPENDENT VALUATION ASSESSMENT OF GZA
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MARKET CAPITALIZATION APPROACH -- HARDING LAWSON TRANSACTION EVIDENCE
<TABLE>
<CAPTION>
HRDG SELECTED INDICATED
$000 MULTIPLE MULTIPLE VALUE
---- -------- -------- ---------
<S> <C> <C> <C> <C>
DEBT-FREE HISTORICAL APPROACH
EV/Revenues
LTM 5/31/00 44,796 0.38 0.38 17,022
EV/EBIT
LTM 5/31/00 3,310 5.6 5.6 18,371
EV/EBITDA
LTM 5/31/00 5,069 3.9 3.9 19,870
EV/Assets
LTM 5/31/00 31,493 0.68 0.68 21,415
INDICATED ENTERPRISE VALUE (Rounded) $17,000 - $21,400
ADD: EFFECT OF EXCESS CASH ADJUSTMENT (Rounded) 6,000 - 7,000
------- -------
CONCLUDED EQUITY VALUE 23,000 - 28,400
======= =======
</TABLE>
- Harding Lawson is considered one of the most comparable of the merged or
acquired companies in terms of line of business, markets served and
certain financial performance benchmarks.
- Harding Lawson is approximately twice the size of GZA.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
INDEPENDENT VALUATION ASSESSMENT OF GZA
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DISCOUNTED CASH FLOW APPROACH
This approach typically utilizes management-prepared, projected financial
statements and estimates of working capital needs to estimate free cash
flows. The free cash flows (on a debt-free basis) are discounted at the
subject company's weighted average cost of capital. A terminal value is
calculated by determining a value for the subject company in the final year
of the forecast. The terminal value is discounted to the present at the
subject company's weighted average cost of capital.
While the Company has prepared a long-term financial forecast, Houlihan
Lokey did not consider a Discounted Cash Flow approach because:
- The Company's financial forecast was over 1 year old (prepared in
November 1998);
- The forecast assumed a series of acquisition transactions -- to date,
none of these acquisitions has occurred; and
- Given the Company's past performance and the growth required to meet the
forecasted figures, Houlihan Lokey considers the Company's ability to
meet the forecasted figures remote.
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
INDEPENDENT VALUATION ASSESSMENT OF GZA
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ANALYSIS OF CONTROL PREMIUMS
As part of its analysis, Houlihan Lokey analyzed control premiums paid in
the Harding Lawson transaction as well other industry transactions.
The following table shows the controlling interest valuation of the
Company's common stock based on adjusting the Company's pre-announcement
stock price for control.
CONTROL PREMIUM ANALYSIS
<TABLE>
<CAPTION>
GZEA STOCK CONTROL IMPLIED CONTROL GZEA
PRICE PREMIUM STOCK PRICE
---------- ------- ---------------------
<S> <C> <C> <C>
Median Industry Control Premium(1) $5.00 30.0% $6.50
Latest (day prior)(2) - Harding Transaction $5.00 24.3% $6.22
30 Day Avg(2) - Harding Transaction $4.57 36.9% $6.25
60 Day Avg(2) - Harding Transaction $4.46 43.8% $6.41
90 Day Avg(2) - Harding Transaction $4.39 46.1% $6.41
180 Day Avg(2) - Harding Transaction $4.22 48.8% $6.28
1 Year Avg(2) - Harding Transaction $4.31 48.0% $6.38
IMPLIED RANGE $6.22 - $6.50
</TABLE>
(1) Based on merged and acquired transaction evidence exclusive of the
Harding Lawson control premium which is broken out separately
(2) From date of Company's announcement of discussions with FutureCo
on March 31, 2000
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STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
INDEPENDENT VALUATION ASSESSMENT OF GZA
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SUMMARY OF INDEPENDENT VALUATION ASSESSMENT
SUMMARY OF INDEPENDENT VALUATION ASSESSMENT
<TABLE>
<CAPTION>
MARKET MULTIPLE MERGED & ACQUIRED HRDG CONTROL PREMIUM
ANALYSIS ANALYSIS ANALYSIS ANALYSIS
---------------- ----------------- -------- ---------------
<S> <C> <C> <C> <C>
Concluded Value Range $23,600,000 - $29,500,000 $28,400,000 - $32,200,000 $23,000,000 - $28,400,000
Less: Shutdown
Costs/Exposure 1,450,000 - (400,000) 1,450,000 - (400,000) 1,450,000 - (400,000)
----------- ----------- ----------- ----------- ----------- -----------
Concluded Equity Value $22,150,000 - $29,900,000 $26,950,000 - $32,600,000 $21,550,000 - $28,800,000
Outstanding Shares 3,705,122 - 3,705,122 3,705,122 - 3,705,122 3,705,122 - 3,705,122
Per Share Price $5.98 - $8.07 $7.27 - $8.80 $5.82 - $7.77
----------- ----------- ----------- ----------- ----------- -----------
Concluded Equity Value $22,150,000 - $29,900,000 $26,950,000 - $32,600,000 $21,550,000 - $28,800,000
Add: Option Proceeds $2,139,775 $2,139,775 $2,139,775 $2,139,775 $2,139,775 $2,139,775
----------- ----------- ----------- ----------- ----------- -----------
Aggregate Equity Value $24,289,775 $32,039,775 $29,089,775 - $34,739,775 $23,689,775 $30,939,775
Outstanding Shares 3,705,122 3,705,122 3,705,122 3,705,122 3,705,122 3,705,122
Total In-the-Money Options 568,750 568,750 568,750 568,750 568,750 568,750
----------- ----------- ----------- ----------- ----------- -----------
Total Fully Diluted
Shares Outstanding 4,273,872 4,273,872 4,273,872 4,273,872 4,273,872 4,273,872
Price Per Fully Diluted
Share $5.68 - $7.50 $6.81 - $8.13 $5.54 - $7.24 $6.22 - $6.50
=========== =========== =========== =========== =========== =========== ===== =====
</TABLE>
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<PAGE> 26
CONSIDERATION OF 3RD PARTY ALTERNATIVES
<PAGE> 27
STRICTLY CONFIDENTIAL GZA GEOENVIRONMENTAL TECHNOLOGIES, INC.
CONSIDERATION OF 3RD PARTY ALTERNATIVES
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TIMELINE OF 3RD PARTY DISCUSSIONS
MARCH APRIL MAY JUNE
FutureCo and Special Potential FutureCo
Committee Discussions Buyers LOI
Researched Executed
Contacted Discussions
Potential Buyer with 3rd
Candidates Parties
Prepared Continued
Information
Memorandum
SUMMARY OF ACTIVITIES
SUMMARY
INFORMATION MEMORANDUM
NUMBER CONTACTED DISTRIBUTION
---------------- ----------------------
Strategic Buyers 21 5
Financial Buyers 3 2
-- -
TOTAL 24 7
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