Exhibit (c) (9)
CONFIDENTIAL Project Fusion September 2021 Imperial Capital's View of Potential Houlihan Lokey and Special Committee Valuation
CONFIDENTIAL Imperial's View on Valuation Analysis 2 Implied Share Price Range($US in millions, except for share price) Low Midpoint High Implied TEV - IWCO363.2$377.7$393.7$Less: IWCO ST + LT Debt363.8 363.8 363.8 Remaining Equity Value-$13.9$29.9$Implied TEV - ModusLink113.0 116.7 120.8 Less: ModusLink ST + LT Debt- - - Remaining Equity Value113.0$116.7$120.8$Less: STCN LT Debt11.811.811.8Plus: Potential Seller Calculation of NOLs38.438.438.4Equity Value Range139.6$157.2$177.3$Shares Outstanding 62.8 62.8 62.8 Implied Share Price Range 2.21$2.50$2.82$
CONFIDENTIAL Imperial's View on Valuation Analysis 3 Share Price Sensitivity Note: Assumes approximately 3.3% and 2.1% perpetual growth rate for IWCO and ModusLink, respectively IWCO Discount Rate 11.4% 12.4% 13.4% 14.4% 15.4% 10.5% 4.47 $3.59 $2.90 $2.34 $1.89 $11.5% 4.24 $3.37 $2.68 $2.12 $1.66 $12.5% 4.07 $3.19 $2.50 $1.94 $1.49 $13.5% 3.92 $3.05 $2.36 $1.80 $1.34 $14.5% 3.80 $2.93 $2.24 $1.68 $1.22 $ModusLink Disc. Rate IWCO Discount Rate 11.4% 12.4% 13.4% 14.4% 15.4% 10.5% 5.00 $4.03 $3.27 $2.66 $2.16 $11.5% 4.75 $3.78 $3.02 $2.41 $1.91 $12.5% 4.56 $3.58 $2.82 $2.21 $1.72 $13.5% 4.40 $3.43 $2.67 $2.06 $1.56 $14.5% 4.27 $3.30 $2.54 $1.93 $1.43 $ModusLink Disc. Rate Note: Assumes approximately 3.8% and 2.6% perpetual growth rate for IWCO and ModusLink, respectively IWCO Discount Rate 11.4% 12.4% 13.4% 14.4% 15.4% 10.5% 3.99 $3.21 $2.58 $2.06 $1.64 $11.5% 3.79 $3.01 $2.38 $1.86 $1.44 $12.5% 3.63 $2.84 $2.21 $1.70 $1.27 $13.5% 3.50 $2.71 $2.08 $1.57 $1.14 $14.5% 3.39 $2.60 $1.97 $1.46 $1.03 $ModusLink Disc. Rate Note: Assumes approximately 2.8% and 1.6% perpetual growth rate for IWCO and ModusLink, respectively
CONFIDENTIAL Imperial's View on Valuation Analysis 4 IWCO Enterprise Value Sensitivity Enterprise Value Sensitivity Analysis - Perpetuity Growth Discount Rate 377.70 $11.4% 12.4% 13.4% 14.4% 15.4% 2.3% 431 $386 $350 $320 $295 $Perpetuity 2.8% 452 $403 $363 $331 $304 $Growth 3.3% 476 $421 $378 $343 $314 $Rate 3.8% 503 $442 $394 $355 $324 $4.3% 533 $464 $411 $369 $335 $ ModusLinkEnterprise Value Sensitivity Enterprise Value Sensitivity Analysis - Perpetuity Growth Discount Rate 116.67 $10.5% 11.5% 12.5% 13.5% 14.5% 1.1% 130 $119 $110 $102 $95 $Perpetuity 1.6% 136 $123 $113 $105 $98 $Growth 2.1% 142 $128 $117 $108 $100 $Rate 2.6% 149 $133 $121 $111 $103 $3.1% 156 $139 $125 $115 $106$
CONFIDENTIAL Imperial's View on Valuation Analysis 5 IWCO Discounted Cash Flow Analysis IWCO Direct Discounted Cash Flow Analysis ($in millions) Fiscal Year Ended, 2021P 2022P 2023P 2024P 2025P Total Sales 389.8 $263.0 $279.4 $294.8 $309.5 $Cost of Goods Sold 303.6 208.5 189.4 200.9 213.2 Gross Profit 86.3 $54.5 $90.0 $93.9 $96.3 $% Margin 22.1% 20.7% 32.2% 31.9% 31.1% EBITDA 23.2 $6.1 $49.1 $60.2 $61.9 $% Margin 5.9% 2.3% 17.6% 20.4% 20.0% EBITDA 23.2 $6.1 $49.1 $60.2 $61.9 $Less: Depreciation & Amortization (37.1) (31.0) (33.1) (34.2) (35.3) EBIT (13.9) $(24.9) $16.0 $26.0 $26.5 $Less: Taxes - - (4.2) (6.8) (6.9) Plus: Depreciation & Amortization 37.1 31.0 33.1 34.2 35.3 Less: Capital Expenditures (4.1) (1.2) (5.2) (8.0) (8.0) Less: Change in Net Working Capital (8.2) (11.4) 1.0 1.1 1.2 Unlevered Free Cash Flow 10.9 $(6.5) $40.8 $46.5 $48.1 $Present Value of Future Cash Flows 10.9 $(5.8) $31.7 $31.9 $29.1 $Perpetuity Growth Method WACC 13.4% Cumulative PV of FCF 97.9 $Terminal Year FCF 48.1 Growth Rate 3.3% Terminal Value 492.1 $PV of Terminal Value 279.8 Implied Enterprise Value 377.7 $Implied 2021P EBITDA Multiple 16.3x Note: Growth rate calculated as approximate 60/40 weighted average between projected 10 year inflation rate per Federal Reserve Bank of Cleveland and post-operational enhancement revenue CAGR from 2022-2025.
CONFIDENTIAL Imperial's View on Valuation Analysis 6 IWCO Weighted Average Cost of Capital Analysis Source: CapitalIQ.Company Debt/ Equity% Beta (5-Yr) Cost of Debt Unlevered Beta (5-Yr) Interest Expense ($MM) Total Debt ($MM) Effective Tax Rate Omnicom Group Inc. 154% 0.9 26% 0.4 (207.6) 6,341.1 3.3% The Interpublic Group of Companies, Inc. 161% 1.1 26% 0.5 (189.8) 5,115.1 3.7% Digital Media Solutions, Inc. N/A 0.0 26% N/A (13.3) 221.2 6.0% ContextLogic Inc. 5% 0.0 26% 0.0 (3.0) 45.0 6.7% Baozun Inc. 43% 1.1 26% 0.8 (56.6) 2,680.9 2.1% Creative Realities, Inc. 76% 3.9 26% 2.5 (1.0) 7.4 13.0% Marin Software Incorporated 55% 0.3 26% 0.2 (0.2) 8.1 2.0% Average: 82% 1.0 26% 0.7 (67.4) 2,059.8 5.3% Beta Buildup Cost of Equity Unlevered Beta 0.7 Risk-Free Rate1 2.5% Target Debt/Equity 82% Relevered Beta 1.2 Assumed Tax Rate 26% Market Return2 13.5% Relevered Beta 1.2 Size Premium3 5.5% Cost of Equity 21.2% WACC Calculation Debt% 45.2% Notes: Equity% 54.8% 1 Per Duff & Phelps recommendation Tax Rate 26.0% 2 Average 10-year S&P 500 return WACC 13.4% 3 Per Duff & Phelps recommendation based off 5-year avg. EBITDA
CONFIDENTIAL Imperial's View on Valuation Analysis 7 ModusLinkDiscounted Cash Flow AnalysisModusLink Discounted Cash Flow Analysis ($in millions) Fiscal Year Ended, 2021P 2022P 2023P 2024P 2025P Total Sales 234.2 $236.5 $240.3 $249.5 $259.3 $Cost of Goods Sold 185.3 186.9 190.9 198.2 206.0 Gross Profit 48.9 $49.6 $49.4 $51.3 $53.3 $% Margin 20.9% 21.0% 20.6% 20.6% 20.6% EBITDA 12.0 $17.7 $17.5 $19.4 $21.4 $% Margin 5.1% 7.5% 7.3% 7.8% 8.3% EBITDA 12.0 $17.7 $17.5 $19.4 $21.4 $Less: Depreciation & Amortization (3.7) (3.5) (3.5) (3.5) (3.5) EBIT 8.3 $14.2 $14.0 $15.9 $17.9 $Less: Taxes (2.1) (3.6) (3.5) (4.0) (4.5) Plus: Depreciation & Amortization 3.7 3.5 3.5 3.5 3.5 Less: Capital Expenditures (3.1) (4.0) (5.0) (4.5) (5.0) Less: Change in Net Working Capital 3.9 0.5 0.1 0.7 0.7 Unlevered Free Cash Flow 10.7 $10.7 $9.1 $11.6 $12.6 $Present Value of Future Cash Flows 10.7 $9.5 $7.2 $8.2 $7.9 $Perpetuity Growth Method WACC 12.5% Cumulative PV of FCF 43.4 $Terminal Year FCF 12.6 Growth Rate 2.1% Terminal Value 124.4 $PV of Terminal Value 73.2 Implied Enterprise Value 116.7 $Implied 2021P EBITDA Multiple 9.7x Note: Growth rate calculated as approximate 60/40 weighted average between projected 10 year inflation rate per Federal Reserve Bank of Cleveland and projected revenue CAGR from 2022-2025.
CONFIDENTIAL Imperial's View on Valuation Analysis 8 ModusLinkWeighted Average Cost of Capital Analysis Source: CapitalIQ.Company Debt/ Equity% Beta (5-Yr) Cost of Debt Unlevered Beta (5-Yr) Interest Expense ($MM) Total Debt ($MM) Effective Tax Rate XPO Logistics, Inc. 269% 2.1 25% 0.7 (303.0) 7,968.0 3.8% Aspen Technology, Inc. 41% 1.2 25% 0.9 N/A 329.6 N/A Generix SA 57% 0.6 25% 0.4 (0.5) 25.4 2.0% ExlService Holdings, Inc. 34% 1.0 25% 0.8 (10.2) 249.4 4.1% R. R. Donnelley & Sons Company N/A 2.9 25% N/A (136.9) 1,761.2 7.8% PFSweb, Inc. 161% 1.9 25% 0.8 (1.4) 82.1 1.8% Molecular Data Inc. N/A 0.0 25% N/A (10.7) 180.4 5.9% Average: 112% 1.4 25% 0.7 (77.1) 1,513.7 4.2% Beta Buildup Cost of Equity Unlevered Beta 0.7 Risk-Free Rate1 2.5% Target Debt/Equity 112% Relevered Beta 1.4 Assumed Tax Rate 25% Market Return2 13.5% Relevered Beta 1.4 Size Premium3 5.5% Cost of Equity 23.0% WACC Calculation Debt% 52.9% Notes: Equity% 47.1% 1 Per Duff & Phelps recommendation Tax Rate 25.0% 2 Average 10-year S&P 500 return WACC 12.5% 3 Per Duff & Phelps recommendation based off 5-year avg. EBITDA