WYNDHAM MEXICO PARTNERS

Realizing Its Portfolio Company Investments

Multiple strategies exist for Wyndham Mexico to realize its portfolio investments or otherwise return cash to its investors from portfolio companies.

A greater universe of potential international strategic buyers exists, since:

• Wyndham Mexico’s approach creates substantial incentive for a competitor or major customer to acquire a Wyndham company in order to starve its competitors of an important supply source.
• Wyndham Mexico’s companies are also attractive to buyers, particularly financial buyers, since the companies are now US entities, headquartered in the U.S.
• Public offerings of portfolio companies are possible on international stock exchanges in developed markets in the U.S. and Europe.
• With the growing international demand for emerging market securities and the rapid development and growth of local securities exchanges, especially the Bolsa in Mexico, public offerings on the Bolsa are increasingly realistic possibilities.
• Since liquidity is built up in each US holding company in US dollars, such cash is available for recapitalizations or special dividends, without the need to issue any debt.
• The exit multiple of each company should expand due to Wyndham Mexico’s addition of value: the company is now a leading global, debt-free supplier, with increased growth in sales, profits and cash flow and expanded margins; however, Wyndham does not rely on the exit multiple exceeding the acquisition multiple for it to generate superior investment returns.
  

Finally, since Wyndham Mexico acquires no less than majority controlling interests in its target companies, it can determine when it is most attractive to realize its investments.