Company: HOUS
Filing Date: 2025-12-02
Form Type: DEFM14A
Source: 0001628280-25-054793
Chunk: 114

Company: Anywhere Real Estate Inc.
Filing Date: 2025-12-02
Form: DEFM14A
Chunk 114
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|:------|:----|:-------------------------------|----:|:----|:--------------------|------:|:----|:----------------------------|:----|:------|:----|:-------------------------------|------:|:----|:--------------------|------:|
| AV / 26E Gross Profit |     |                             |     | 5.2x  |     | $                              | 742 |     | $                   | 10.22 |     |                             |     | 5.2x  |     | $                              | 1,431 |     | $                   | 12.28 |
| AV / 26E EBITDA       |     |                             |     | 11.3x |     | $                              | 420 |     | $                   | 17.58 |     |                             |     | 11.3x |     | $                              |   370 |     | $                   |  6.98 |

Following this analysis, Morgan Stanley then compared the ranges of implied share prices for each of Compass and Anywhere. Morgan Stanley compared the lowest implied equity value per share for Anywhere to the highest implied equity value per share for Compass to derive the lowest exchange ratio implied by each pair of estimates. Similarly, Morgan Stanley compared the highest implied equity value per share for Anywhere to the lowest implied equity value per share for Compass to derive the highest exchange ratio implied by each pair of estimates. The implied exchange ratios resulting from this analysis, as compared to the exchange ratio of 1.436 provided for in the merger, were:

|                                          |     | Implied Exchange Ratio Range |     |                 |
| AV / 26E Gross Profit to AV / 26E EBITDA |     |                              |     | .833x to 2.518x |

Discounted Cash Flow Analysis

Anywhere

Morgan Stanley performed a discounted cash flow analysis, or “DCF,” which is designed to imply a value of a company by calculating the present value of estimated future unlevered free cash flows and terminal value of the company. The “unlevered free cash flows” or “free cash flows” refer to a calculation of the future cash flows of an asset without including, in such calculation, any debt-servicing costs. The present value of a terminal value, representing the value of unlevered free cash flows beyond the end of the forecast period, is added to arrive at a total aggregate value. Outstanding debt and non-controlling interests is subtract