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Investment Readiness Report: Financial and Operational Analysis Report 24 Aug 2023

Updated: Aug 25, 2023

Summary: Everest Assets Group (EAG) stands out as a pioneering investment firm with a strategic focus on the consolidation of IT and Cybersecurity firms. Their vision is to structure these firms into a unified group penetrating the UK and EU MidCap market, with a London IPO in 2027-28 to generate further acquistion funds. With a clear emphasis on leveraging intangible assets and the transformative power of AI, EAG presents a compelling investment opportunity (see attachment below for details). 1. Financial Health and EBITDA Maximization: EAG recognizes the significance of EBITDA as a key metric for evaluating a company's operational performance and profitability. EAG’s strategies to enhance EBITDA include: • Streamlining operations using AI. • Implementing strategic pricing based on value perception. • Differentiating products or services. • Regular cost control. • Investing in AI technology (see attachment below for details).

2. Services and Acquisition Strategies: EAG combines AI with cutting-edge algorithms to identify, value, and acquire companies in the IT and Cybersecurity sectors. Their algorithms have delivered an average increase in Net Asset Value (NAV) of 1400% and a surge in EBITDA of up to 40%. EAG's AI-driven approach identifies inefficiencies in the IT and cybersecurity sectors, offering innovative solutions to address them (see attachment below for details).


3. Target Investment Analysis: EAG has identified 29 profitable targets with a combined post-revaluation NAV of nearly £1 Billion. Detailed analysis of top target firms in the table below:


Investment Readiness Report: Financial and Operational Analysis Report 24 Aug 2023
Investment Readiness Report: Financial and Operational Analysis Report 24 Aug 2023
Investment Readiness Report: Financial and Operational Analysis Report 24 Aug 2023
Investment Readiness Report: Financial and Operational Analysis Report 24 Aug 2023


Investment Report on Everest Assets Group
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1. Financial Health and EBITDA Maximization: EAG recognizes the significance of EBITDA as a key metric for evaluating a company's operational performance and profitability. EAG’s strategies to enhance EBITDA include: · Streamlining operations using AI. · Implementing strategic pricing based on value perception. · Differentiating products or services. · Regular cost control. · Investing in AI technology.

2. Services and Acquisition Strategies: EAG combines AI with cutting-edge algorithms to identify, value, and acquire companies in the IT and Cybersecurity sectors. Their algorithms have delivered an average increase in Net Asset Value (NAV) of 1400% and a surge in EBITDA of up to 40%. EAG's AI-driven approach identifies inefficiencies in the IT and cybersecurity sectors, offering innovative solutions to address them. 3. Target Investment Analysis: EAG has identified 29 profitable targets with a combined post-revaluation NAV of nearly £1 Billion. Detailed analysis of top three target firms: 1. CyberSecure Ltd. MetricValueSectorSecurityMarket Position15% UK market sharePurchase Price£7.5 millionCurrent NAV£2 millionPost-revaluation NAV£47.7 millionGrowth Prospects (CAGR)18% over 5 yearsGross Revenue (Annual)£28 millionEBITDA£2.7 million 2. IT Solutions Inc. MetricValueSectorIT Services LLCMarket PositionProminent in IT services, specializing in cloud services and digital transformationPurchase Price£9.6 millionCurrent NAV£4.5 millionPost-revaluation NAV£54.1 millionGrowth Prospects (CAGR)20% over 5 yearsGross Revenue (Annual)£27.5 millionEBITDA£3.05 million 3. CyberGuard PLC. MetricValueSectorCybersecurityMarket PositionPioneer in AI-based threat detection and mitigationPurchase Price£2.5 millionCurrent NAV£1.1 millionPost-revaluation NAV£17.8 millionGrowth Prospects (CAGR)22% over 5 yearsGross Revenue (Annual)£7 millionEBITDA£0.5 million Consolidated Table Metric / £MillionCyberSecure Ltd.IT Solutions Inc.CyberGuard PLC.Swiss Guard PlcYear 2 TotalsSectorSecurityIT Services LLCCybersecurityIT Hardware, Cloud and ConfigurationHolistic Cyber + IT SolutionsMarket Position15th UKProminent in ITPioneer in AI-based2nd in CountyN/KPurchase Price£7.50£9.60£2.50£9.00£28.60Current NAV£2.00£4.50£1.10£3.00£10.60Post-revaluation NAV£47.70£54.10£17.80£55.00£174.60Growth Prospects (CAGR)18%20%22%12%18%Gross Revenue (Annual)£28.00£27.50£7.00£35.00£97.50EBITDA£2.70£3.05£0.50£2.00£8.25Names and other Target identifiable data anonymized The consolidated table provides a side-by-side comparison of the key performance metrics of the top three target firms, making it easier to evaluate their potential and make informed investment decisions. 4. NOMAD Forecast for IPO Valuation Based upon the above tables the consolidated figures are below: LSE AIM Share Price Multiplier (Assets at IPO)£Million LOW Median HIGHShare Multiplier182334NAV at IPO£184£368£460Market Capitalisation£3,309£8,457£15,626Shares Sold20%15%10%Money Raised£662£1,268£1,563 5. Growth Strategies in Information Management and Cybersecurity: EAG emphasizes the value of intangible assets in the Information Management / IT Service and Cybersecurity sectors. Strategies include operational efficiency through technology, strategic pricing, product differentiation through R&D, cost control, and investment in intangible assets. 6. Business Valuation and Intangible Assets: EAG recognizes the increasing significance of intangible assets in business valuation. Intangible assets such as intellectual property, brand recognition, and proprietary technology often hold more value than physical assets. 7. Investor Pitchdeck: EAG has made available an investor pitch deck that provides more detailed information about their vision, strategies, and investment opportunities. 8. Evaluation of the EAG Leadership Team Strengths: Diverse Expertise: The leadership team boasts a wide range of expertise, from M&A, AI, cybersecurity, finance, to e-learning. This diversity ensures a holistic approach to business strategies and decision-making. Proven Track Record: Steven Windmill has successfully executed a monumental £18.6 billion transformational programme and spearheaded 51 successful M&A projects. Michael 'Mike' Russell has a history of successful IPOs, raising significant capital. Their past achievements provide confidence in their capabilities. Strategic Vision: The leadership's focus on AI, especially with Robert F. Coles' pioneering work in AI for e-learning, aligns with the company's vision of enhancing businesses through AI. Financial Acumen: Michael 'Mike' Russell's experience with UK GAAP, AIM, NASDAQ, and NOMAD reporting, along with his leadership in various financial committees, ensures robust financial oversight and stewardship of invested monies. Operational Excellence: Graham Mann's extensive experience in cybersecurity consultancy and business development ensures that the company stays at the forefront of the cybersecurity landscape. Commitment to Governance: The leadership's involvement in shaping frameworks like the UK Code of Corporate Governance and the Wates Principles of Corporate Governance in 2019 indicates a commitment to best practices and good governance.

Weaknesses: Potential Over-reliance on AI: While AI is transformative, an over-reliance might lead to overlooking traditional business strategies that could be beneficial. Their published EBITDA maximisation strategy mediates this concern. Diversification Concerns: The leadership's strong focus on IT, cybersecurity, and AI might lead to potential blind spots in other lucrative sectors. Communication with Stakeholders: While the leadership has a strong track record, regular communication with stakeholders regarding the company's direction, challenges, and strategies is crucial for maintaining trust. Integration Challenges: Merging multiple companies into a unified group can present cultural, operational, and strategic challenges. The leadership will need to ensure smooth integrations to realize the full potential of their acquisitions.

9. Conclusion: The EAG leadership team, with its diverse expertise and proven track record, is well-positioned to acquire, merge, and enhance businesses through AI and EBITDA improvement methodologies. Their commitment to good stewardship of invested monies and their experience with IPOs further strengthens their position. However, as with any leadership team, there are areas where they will need to be cautious to ensure long-term success.

10. Recommendation: Given the strategic focus of EAG on the IT and Cybersecurity sectors, their innovative approach to leveraging AI and intangible assets, and their clear vision for future growth, the EAG Board recommends that investors consider EAG as a promising investment opportunity. EAG’s commitment to maximizing EBITDA, combined with their track record of successful acquisitions and growth strategies, positions EAG as a leader in the investment landscape.

11. Acquisition Target DataMetric / £MillionsTarget 5Target 6Target 7Target 8Target 9Target 10TOTALSSectorIT & Cybersecurity Bank SecurityIT ServicesCybersecurityIT ServicesSecurity Market Position Prominent SwitzerlandTBCTBCTBCTBCTBCTBC Purchase Price £9£3.80£7.60£7.40£7.30£7.10£42Current NAV £3£2.80£2.60£2.50£2.40£2.30£16Post-revaluation NAV £50£49£48£47£46£45£285Growth Prospects (CAGR) 20%9.50%9%18.80%8.60%18.40%14%Gross Revenue (Annual) £35£8£31£30£29£28£161EBITDA £3.10£3£2.90£2.80£2.70£2.60£17



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