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IE Acquisition Proposal

Final Consulting Group


Rachel Clark, Michael Samsel, Katie Presser & Ariela Engber

Agenda
1. Current situation 2. Acquisition target 3. External environment 4. Opportunity analysis 5. Acquisition strategy 6. Questions

IE's Current Situation

Threat of corporate raiders Excess cash Declining stock prices Changing industries

Strategic Decision
Invest in commodities and oil/gas
Demonstrate strategic management Decrease threat posed by corporate raiders Benefit from synergies Increase financial stability

Introducing...

Teledyne
Teledyne provides enabling technologies for industrial growth markets.

Customers & Markets Served


Markets
Oil and gas exploration and production Oceanographic research Defense components Environmental monitoring Electronics design and development Factory automation and medical imaging

Businesses
Percent of Sales 2012
Instrumentation - 35% Aerospace and Defense - 31% Digital Imaging - 20% Engineered Systems- 14%

Instrumentation
Teledyne Instruments provides innovative measurement devices to: Monitor critical manufacturing processes Improve productivity Facilitate energy exploration Protect the environment

Products

Segment growth

Digital Imaging
High performance sensors Cameras X-Ray materials Software Infared detectors

Products

Segment Growth

Aerospace & Defense


Data Acquisition Systems General Aviation Batteries Microwave Components Wireless communication systems

Products

Segment growth

Engineered Systems

Missile defense Fuel cell systems Turbine engines Nuclear waste storage Space components

Products

Segment Growth

Strategic Acquisitions
2008-2012
Total Acquired: 17 Total Divested: 2 Inst. (8) A&D (3) DI (6)

Teledyne Current Financials


MKT Cap: 2.92B Net Margin: 7.71 Current Ratio: 1.83 P/E Ratio: 15.99 Qtrly Growth: 15.3

Historic - 5 years

Industry

Industry Definition
Industrial Goods
Industries served include:
Defense Manufacturing Medical Scientific research Exploration Agriculture Energy

5 Forces

PEST

Political & Economic

Beijing

Environmental

Sociocultural

Technological

Competitors

Strategic Group Map

Comparative Financials
Key Financial Statistics Teledyne Northrop Grumman Meggit PLC

Mkt Cap

2.92B

17.10B

3.70B

Net Profit Margin

7.71%

7.84%

15.15%

Qtrly Revenue Growth

19.60%

-0.50%

3%

Current Ratio

1.83

1.39

1.2

P/E Ratio

15.99

9.28

15.42

Historical Comparative

Okay...so what?

Overall Industry Lifecycle

BCG

SWOT

IE + Teledyne

WHY Teledyne?

Diversified Risk Strategic Management Profitable Segments Synergy with IE Inc.

Strategic Fit & Scope

Acquisition Strategy
IE should execute a complete acquisition of Acquisition Strategy Teledyne Technologies
Market Cap - $2.92B at a 25% premium
Total Acquisition Cost: of $3.55 B

After acquisition
Monitor declining segments

Looking Forward...

Thank you!