Lsl Property Services Plc · LSE:LSL
Lsl Property Services — Merger or Acquisition (November 2011)
15 slides from Lsl Property Services's merger presentation, Nov 4, 2011
Slide 1: Proposed Acquisition of Marsh and Parsons Ltd
Proposed Acquisition of Marsh and Parsons Ltd 4 November 2011 1
Slide 2: Executive Summary
LSL Property Services plc Marsh and Parsons Acquisition Executive Summary Marsh and Parsons - key benefits to LSL - Consistent with LSL strategy of gaining central London exposure - Established premium brand in the prime London market - Highly experienced and successful management team with strong t
Slide 3: LSL has an excellent track record of organic and acquisitive profitable growth
LSL Property Services plc Marsh and Parsons Acquisition LSL has an excellent track record of both organic and acquisitive profitable growth EBITA - LFL Major Acquisitions Successful acquisition and transformation of 40 16.9% 19.3% 24% Your Move and e.surv from Aviva in July 35 17.9% 2004 for £42m EB
Slide 4: LSL's strategic intent has been to address the London gap in its Estate Agency proposition
LSL Property Services plc Marsh and Parsons Acquisition LSL’s strategic intent has been to address the London gap in its Estate Agency proposition Agency – Asset Agency – Financial Surveying Agency – Branches Management Services LSL Market leader #2 in market Market leader #4 in market position CCD
Slide 5: Strategic Rationale
LSL Property Services plc Marsh and Parsons Acquisition Strategic Rationale Provides LSL with a well established presence in the prime London Estate Agency Market London market historically more robust characteristics than the wider UK market Marsh and Parsons has equal weighting across both residen
Slide 6: The London Market
LSL Property Services plc Marsh and Parsons Acquisition The London Market London more robust due to higher proportion of cash and foreign buyers Largest GDP of any European city, strength of financial services sector, least exposure to public sector job cuts of any UK region Prime London market – lo
Slide 7: Marsh and Parsons
LSL Property Services plc Marsh and Parsons Acquisition Marsh and Parsons Leading Central London Estate Agency established in 1856 13 offices in West and South West London – 5 in the Royal Borough of Kensington and Chelsea - Organic and acquisitive growth (Vanstons acquired 2007) Residential Sales,
Slide 8: Marsh and Parsons Business Model
LSL Property Services plc Marsh and Parsons Acquisition Marsh and Parsons Business Model Premium Brand - Deep local market understanding - “Local know how. Better Results” Balanced Model - 50% residential income, 50% lettings - Residential focussed on mid-market properties - Relatively high commissi
Slide 9: A committed and dynamic management team
LSL Property Services plc Marsh and Parsons Acquisition Marsh and Parsons A committed and dynamic management team Peter Rollings - Chief Executive - Purchased Marsh and Parsons with Sherry Fitzgerald in 2005 - Previously MD of Foxtons Liza-Jane Kelly - Sales Director - Joined Marsh and Parsons in 20
Slide 10: Strong track record
LSL Property Services plc Marsh and Parsons Acquisition Marsh and Parsons Strong track record £m 2008 2009 2010 Revenue 13.6 17.0 23.3 Operating (loss) / profit (0.5) 3.6 6.3 Net finance income / (0.2) (0.1) (0.0) (expense) (Loss) / Profit before Tax (0.7) 3.5 6.3 Track record of strong financial pe
Slide 11: Growth Opportunities
LSL Property Services plc Marsh and Parsons Acquisition Marsh and Parsons Growth Opportunities Continued sales growth from 13 offices Lettings growth from existing and new properties Open new offices - potential to substantially increase the number of offices Bolt-on acquisitions Ability to share ‘b
Slide 12: Principal terms of the acquisition
LSL Property Services plc Marsh and Parsons Acquisition Principal terms of the acquisition Acquisition of the entire share capital of Marsh and Parsons for £50m on a debt free basis Marsh and Parsons Management shareholders (who own 28% of Marsh and Parsons) participate in an incentive scheme under
Slide 13: Impact of the acquisition on LSL
LSL Property Services plc Marsh and Parsons Acquisition Impact of the acquisition on LSL Net consideration of £45.1m will be funded using LSL’s existing bank facility of £75m which is in place till March 2014 LSL will remain prudently leveraged and will be well placed to consider further further org
Slide 14: LSL current trading
LSL Property Services plc Marsh and Parsons Acquisition LSL current trading LSL’s trading has been satisfactory for the 3 months ended 30th September 2011 but has been more challenging during October 2011 Estate Agency making good progress with benefits flowing from the investments made in branch ma
Slide 15: Executive Summary
LSL Property Services plc Marsh and Parsons Acquisition Executive Summary LSL - excellent track record of organic and acquisitive growth Marsh and Parsons - key benefits to LSL - Consistent with LSL strategy of gaining central London exposure - Established premium brand in the prime London market -
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