An M&A Heat Wave With Another Large Deal

Research evidence excerpt

An M&A Heat Wave With Another Large Deal

TD Cowen Lumine Group Inc.

Global Research July 2, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Technology

Our valuation methodology is primarily based on comparable company multiples, such as

EV/EBITDA, P/E, EV/FCF, EV/Revenue; Discounted Cash Flow; and sum-of-the-parts. We make

investment recommendations on certain early stage, pre-revenue companies based upon

an assessment of their business model, technology, probability of market success, and the

potential market opportunity, balanced by an assessment of applicable risks. Such companies

may not be assigned a price target.

Investment Risks

Companies in our coverage face the risk of competition from new innovations and technology

risks, including operational and cybersecurity risks. They are also affected by economic

activity, including enterprise and government (IT) spending and consumer spending patterns.

Changes to technological standards and/or legal/regulatory/compliance frameworks could

negatively impact our covered companies. Goods and labour-related cost pressures, as well as

supply chain disruptions, can impact the performance of our covered companies. Our covered

companies operate internationally, exposing them to currency fluctuations and other factors

associated with operating in a foreign territory.

Risks To The Price Target

Key risks to our target price include the following: inability to deploy capital successfully on

M&A; limited investor base due to its listing on the TSX Venture Exchange; integration risk;

principal shareholders with significant voting power (Constellation’s Super Voting Share gives

it 50.1% of voting rights); increased competition for VMS assets; an economic downturn; risks