Company: ATLN
Filing Date: 2025-01-23
Form Type: S-4/A
Source: 0001213900-25-006032
Chunk: 491

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-23
Form: S-4/A
Chunk 491
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 a 3.5% terminal compound growth rate comprised of 2.5% growth due to inflation and 1% real growth. The cash flow in the fifth period (the final year) of our cash flow forecast was $10.313 million. Applying the growth rate of 3.5% resulted in a 2029 cash flow of $10.674 million, which we capitalize at 18.79% - 3.5% = 15.3%. This results in a terminal value estimate of $69.831 million. To estimate a terminal value using the EMM, we applied a multiple of 5.6x EBITDA, which we obtained from the trading multiples of guideline public companies that we deem reasonable for valuation purposes. The forecasted terminal year EBITDA was $13.082 million. Applying the EBITDA multiple of 5.6x to the terminal year EBITDA resulted in a terminal value estimate of $73.520 million. The table below shows our calculation of the terminal value using each method.

| Staffing 360 Solutions Terminal Value Assumptions: |        |
| TV Growth Inputs                                   |        |
| Inflation Growth:                                  |   2.5% |
| Real Growth:                                       |   1.0% |
| TV Growth Estimate:                                |   3.5% |
| WACC Estimate:                                     |  18.8% |
| Terminal Value (Perpetuity Growth Method)          | 69,831 |

| Exit Multiple Method  |        |
| Exit EBITDA Multiple: |   5.6x |
| Terminal Year EBITDA: | 13,082 |
| Terminal Value (EMM)  | 73,520 |

Midyear Convention A common assumption in the normal discounting process is that cash flows are realized at the end of the period. This is not always the case since sales occur over the course of a period and expenses occur over the course of a period. Thus, the benefit stream is then available during the period and not only at the end. To implement this logic, analysts can use what is called the “midyear convention”. The midyear convention calculates the present value of a benefit stream using arithmetic that presumes half is available before the midyear and half is available after the midyear. We applied the midyear convention to better reflect the Company’s actual realization of cash flows. Indicated Value To estimate the fully -dilutedshare value of Company