Company: ATLN
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006537
Chunk: 482

Company: ATLANTIC INTERNATIONAL CORP.
Filing Date: 2025-01-24
Form: 424B3
Chunk 482
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-Tax Rate) + % Equity * Cost of Equity

| Staffing 360 Solutions, Inc. WACC Estimate: | 18.79% |

| Value of Staffing 360 Solutions, Inc. Common Stock |

Annex B-9

Terminal Value Estimates We estimated the terminal value using two common approaches, the Perpetuity Growth Method (PGM) and the Exit Multiple Method (EMM). The PGM, which assumes that beyond the forecast period the firm will grow at a constant rate in perpetuity, extends the estimated terminal year cash flow one period at the estimated perpetuity growth rate, then capitalizes that cash flow. The EMM, however, assumes that at the end of the forecast period, the position in the investment will be exited. Therefore, to estimate a terminal value using the EMM, an analyst applies a market -basedtrading multiple to a terminal forecast year financial statistic, such as EBITDA. To estimate a terminal value using the PGM, we assumed 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