Class VI Elevate Valuation Report – Disclosures: 
Investment advisory services offered through Class VI Partners’ affiliate Class VI Family Office, LLC, a Registered Investment Adviser with the U.S Securities and Exchange Commission. Class VI Partners offers investment banking and private securities transactions through its affiliate, Class VI Securities, LLC. Class VI Securities, LLC is a registered broker/dealer and member of the Financial Industry Regulatory Authority (FINRA). Class VI Pathfinder, LLC provides general business consulting to privately held businesses. Collectively these entities are referred to herein as “Class VI”. 

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Class VI Elevate Valuation Report Methodology:  

1. Data Sources: Transaction information, including Class VI Transaction Value ($M), Pathfinder Preparation (Y/N), and Opportunity Type, was sourced from 77 Class VI Securities transactions between 2012 and August 2024.

2. Exclusions: One transaction from the selected time period was excluded from analysis because it was a carve-out and lacked the EBITDA metric required for a BizEquity Valuation.

3. Valuation Methodology: To generate the BizEquity Valuation metric, the BizEquity Business Valuation tool was employed. For each transaction, the following inputs were entered into the platform: company zip code, industry classification, 2023 income (derived from the last available Bid Matrix TTM Revenue record), and pre-tax income (calculated using the Bid Matrix TTM EBITDA). The BizEquity platform used this data to produce an estimated valuation for each company. To calculate the Premium Above BizEquity, we divided the Class VI Transaction Value ($M) by the BizEquity Valuation ($M) to get a percentage. This metric represents the amount our transaction value achieved over or under the BizEquity estimate. 

4. Pathfinder Preparation: Companies were classified as having undergone Pathfinder Preparation (indicated with a “Y”) if they participated in either the Pathfinder or Board Advisory programs conducted by Class VI.

5. Value Creation Formula Scores: A Value Creation Formula Score was assigned to each company by a valuation professional at Class VI Securities.

This score was based on an evaluation of five key dimensions: 
• A credible growth story (growth) 
• A well-functioning team (team) 
• Operational excellence (operations) 
• Strong financials (financials) 
• A reduced level of risk (risks) 

Each dimension was scored on a scale of 1 to 10, and the scores were summed to generate a final Value Creation Formula Score, with a maximum possible score of 50. A 10 indicates the lowest level of risk. 

6. Analysis: To account for outliers in the data set, median values were calculated for the following metrics: Premium Above BizEquity and Value Creation Formula Scores. The Percentage of Deals with a Premium Exceeding BizEquity was calculated by dividing the number of transactions with a positive premium above the BizEquity valuation by the total number of transactions meeting specific criteria.

The Percentage of Pathfinder Preparation was determined by dividing the number of transactions involving companies that participated in either the Class VI Pathfinder or Board Advisory programs by the total number of transactions meeting specific criteria. 

7. Raw Data: Raw data withheld from report due to client confidentiality.