WYNDHAM MEXICO PARTNERS

Increasing the Value of Its Portfolio Companies

Wyndham Mexico acquires these companies by purchasing their outstanding debt and equity at relatively low acquisition multiples of trailing 12 months’ EBITDA, which is itself “repressed” since often only a fraction of their capacity is being utilized due to lack of working capital.

Wyndham Mexico arranges for each Mexican company

• To be acquired by a U.S.-based holding company, so that it becomes a US company with a Mexican operating subsidiary – this facilitates the company’s ability to obtain financing in the international capital markets
• To be recapitalized so that it is debt-free as of closing
• To have working capital financing in the U.S. – through Wyndham’s strategic financial partners – to enable the company to satisfy its significant order backlog and additional business. (Currency differences are not an issue since sales are in US dollars, while costs are in Mexican pesos.)
• To increase its profitability and cash flow

• through operating improvements identified and implemented by Wyndham’s in-house experienced operating team
• through Wyndham’s in-house, unique system for reducing each company’s selling, general, administrative and working capital financing costs, using economies of scale in purchasing and through Wyndham’s strategic alliances with leading working capital providers

• To pay less for key raw materials and penetrate other world markets through Wyndham’s international trading company relationships.