EFTA02638687

From: Richard Kahn < Sent: Friday, August 25, 2017 9:27 AM To: Jeffrey Epstein Subject: Fwd: Next Please advise. Thank you. HBRK Associates Inc. 575 Lexington Avenue, 4th Fl=or New York, NY 10022 Begin forwa=ded message: From: Neale=Attenborough < Date: August 24, 2017 at 4:50:55 PM EDT To: =/b> Richard Kahn < Cc: Chris Lawler < Subject: I look forward to our conve=sation. <mailto For the record, we did actu=lly pay $18MM for 42% of this business in 2008. At the time that repr=sented an - 8x multiple of EBITDA. That is not a fictitious number. In addition we did receive a bid for about the same amount fr=m Open Gate Capital, a reputable private equity firm. I do not unders=and why you say that ii is "hardly legitimate". While=l did say we didn't expect to receive what we paid, I did not say it was immaterial. I don't follow most=of what you say below and look forward to hearing your clarification. =However, can you please clarify one statement specifically? What do you mean when you say the current receivables have not be reviewed in ye=rs? Thanks,</=> EFTA_R1_01870447 EFTA02638687 Neale From: Richard Kah= Sent: Thursday, August 24, 2017 3:45 PM To: Neale Attenborough Cc: Chris Lawler Subject: Next <mailto confirmed thank you We have reviewed your statements that you sent to us a=ong with the K-1's and some financials. Frankly, some o= the numbers are inaccurate as a result of millie. Your annual financ=al statements were reviewed but not audited - shame on all of you... Your calculation of Ebitda includes thi=gs like adding back foreign exchange costs? board fees etc. Tha= is not the way we look at what is unfortunately for all merely a pe=sonal service business. Faith and Joel make up the business, nothing more.&nb=p; We calculate the Ebidta, which we think is an odd way of measuring=value of a personal service biz with lots of competition and small growth o=portuinties if any. Giving you the benefit of the doubt, and ignoring how much you paid or if some of that money=was repaid directly to the former owners of Claxon and not truly understand=ng what you described as a fixed tax payment per quarter (ie based on what l=think looking back over the past three years) ebitda looks like 4-5 million. We have bought man= small biz and usually pay mom and pops for 1- 3 times ebita or more usuall= 4 times net income. We are finding it difficult to get t= more than a 15 million total value for Next ( not including liabilities). The 18 million dollar bid that you mentioned Faith said was h=rdly legitimate. I think further review of the accounting tax etc. i= probably a waste of all our time. As you rightly said, what you init=ally paid is somewhat if not totatly immaterial to todays value. You have not factored in the liabilities,&nbs=; both reputationally and fiscal yet. I think the 5 million cash off=r or 6m over time is fair. I look forward to our conversation on tue=day. As another note, the current receivables have not been reviewed for years... Rich 2 EFTA_R1_0 1870448 EFTA02638688 On Au 24, 2017, at 3:28 PM, Neale Attenborou h «= hrefemailt > wr=te: Disclaimer: This message contains informa=ion that may be confidential and/or privileged and is intended only for the=person(s) named. Any use, distribution, copying or disclosure to any other person is strictly prohibited. If you received this transmissi=n in error, please notify the sender by reply e-mail and then destroy the m=ssage. Opinions, conclusions, and other information in this message that do=not relate to the official business of Golden Gate Capital shall be understood to be neither given nor endorsed=by the company. Where applicable, any information contained in this e-mail i= subject to the terms and conditions in the relevant governing agreement. <Mail Attachment.ics> 3 EFTA_R1_01870449 EFTA02638689