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S-1/A
JONES LANG LASALLE INC filed this Form S-1/A on 07/11/1997
Entire Document
 
<PAGE>
 
                UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
 

<TABLE>
<CAPTION>
                                                           MARCH 31, 1997
                        -----------------------------------------------------------------------------------------
                                                GALBREATH MERGER                                                 
                          HISTORICAL    ---------------------------------                                        
                           COMBINED                 DISPOSITION OF                                     PRO FORMA 
                          PREDECESSOR   HISTORICAL  BUSINESS UNITS  PRO   ACQUISITION   INCORPORATION  COMPANY/  
                        PARTNERSHIPS(1) COMBINED(1) ADJUSTMENTS(2) FORMA  ADJUSTMENTS   ADJUSTMENTS(3) GALBREATH 
                        --------------- ----------- -------------- ------ -----------   -------------- --------- 
                                                                      (IN THOUSANDS)                             
<S>                     <C>             <C>         <C>            <C>    <C>           <C>            <C>       
ASSETS                                                                                                           
Current assets:                                                                                                  
 Cash and cash                                                                                                   
  equivalents....          $  8,094       $ 2,689      $ (1,774)   $  915   $   --         $   --      $  9,009  
                                                                                                                 
 Trade                                                                                                           
  receivables....            52,052         8,665        (5,641)    3,024       --             --        55,076  
 Other                                                                                                           
  receivables....             4,116         1,020          (596)      424       --             --         4,540  
 Prepaid                                                                                                         
  expenses.......             1,115           --            --        --        --             --         1,115  
 Deferred tax                                                                                                    
  asset..........               --            --            --        --        179(6)         --           179  
 Other assets....               --          3,576        (3,576)      --        --             --           --   
                           --------       -------      --------    ------   -------        -------     --------  
 Total current                                                                                                   
  assets.........            65,377        15,950       (11,587)    4,363       179            --        69,919  
Property and                                                                                                     
 equipment.......            14,409         2,183           (35)    2,148       --             --        16,557  
Goodwill                                                                                                         
 resulting from                                                                                                  
 business                                                                                                        
 acquisitions....            10,827           --            --        --     23,651 (6)        --        34,478  
Intangibles                                                                                                      
 resulting from                                                                                                  
 business                                                                                                        
 acquisitions....            11,820           --            --        --      5,913 (6)        --        17,733  
Investment in                                                                                                    
 Galbreath.......               --            --            --        --     29,293 (7)        --           --   
                                                                            (29,293)(6)                          
Investments in                                                                                                   
 real estate                                                                                                     
 ventures........            15,752           129           (32)       97       --             --        15,849  
Long-term                                                                                                        
 receivables,                                                                                                    
 net.............             4,878           291          (291)      --        --             --         4,878  
Other assets,                                                                                                    
 net.............             1,012         1,003        (1,003)      --        --             --         1,012  
                           --------       -------      --------    ------   -------        -------     --------  
                           $124,075       $19,556      $(12,948)   $6,608   $29,743        $   --      $160,426  
                           ========       =======      ========    ======   =======        =======     ========  

LIABILITIES AND PARTNERS' CAPITAL/STOCKHOLDERS' EQUITY                                                           

Current                                                                                                          
 liabilities:                                                                                                    
 Accounts payable                                                                                                
  and accrued                                                                                                    
  liabilities....          $ 19,059       $ 3,559      $    --     $3,559   $   507 (7)    $   --      $    --   
                                                                                886 (6)                          
                                                                                                         24,011  
 Accrued                                                                                                         
  compensation...             6,143         5,317        (2,867)    2,450       --             --         8,593  
 Borrowings under                                                                                                
  short-term                                                                                                     
  credit                                                                                                         
  facility.......            16,800           930          (930)      --        --             --        16,800  
 Current                                                                                                         
  maturities of                                                                                                  
  long-term debt.             9,332           599          (599)      --        --             --         9,332  
                           --------       -------      --------    ------   -------        -------     --------  
 Total current                                                                                                   
  liabilities....            51,334        10,405        (4,396)    6,009     1,393            --        58,736  
Long-term debt:                                                                                                  
 Subordinated                                                                                                    
  loans, less                                                                                                    
  current                                                                                                        
  maturities.....            34,106           --            --        --        --             --        34,106  
 Long-term credit                                                                                                
  facility, less                                                                                                 
  current                                                                                                        
  maturities.....            22,977           455          (455)      --        --             --        22,977  
                           --------       -------      --------    ------   -------        -------     --------  
 Total long-term                                                                                                 
  debt...........            57,083           455          (455)      --        --             --        57,083  
Other long-term                                                                                                  
 liabilities.....             1,008           --            --        --        163 (6)        --         1,171  
                           --------       -------      --------    ------   -------        -------     --------  
 Total                                                                                                           
  liabilities....           109,425        10,860        (4,851)    6,009     1,556            --       116,990  
Partners'                                                                                                        
 capital/stockholders'                                                                                           
 equity:                                                                                                         
 Common stock....               --            --            --        --        --             122          122  
 Additional paid-                                                                                                
  in capital.....               --            --            --        --        --          43,314       43,314  
 Retained                                                                                                        
  earnings.......               --            --            --        --        --             --           --   
 Predecessor                                                                                                     
  Partnership's                                                                                                  
  partners'                                                                                                      
  capital........            14,650           --            --        --     28,786 (7)    (43,436)         --   
 Galbreath                                                                                                       
  owners' equity.               --          8,696        (8,097)      599      (599)(6)        --           --   
                           --------       -------      --------    ------   -------        -------     --------  
 Total partners'                                                                                                 
  capital/                                                                                                       
  stockholders'                                                                                                  
  equity.........            14,650         8,696        (8,097)      599    28,187            --        43,436  
                           --------       -------      --------    ------   -------        -------     --------  
                           $124,075       $19,556      $(12,948)   $6,608   $29,743        $   --      $160,426  
                           ========       =======      ========    ======   =======        =======     ========  
- -------
</TABLE>
  


<TABLE>
<CAPTION>
                            MARCH 31, 1997
                        ----------------------
                        
                        
                                        PRO
                         OFFERING     FORMA AS
                        ADJUSTMENTS   ADJUSTED
                        -----------   --------
                        
<S>                     <C>           <C>
ASSETS                  
Current assets:         
 Cash and cash          
  equivalents....         $72,400 (4)
                          (66,415)(5) $ 14,994
 Trade                  
  receivables....             --        55,076
 Other                  
  receivables....             --         4,540
 Prepaid                
  expenses.......             --         1,115
 Deferred tax           
  asset..........             --           179
 Other assets....             --           --
                          -------     --------
 Total current          
  assets.........           5,985       75,904
Property and            
 equipment.......             --        16,557
Goodwill                
 resulting from         
 business               
 acquisitions....             --        34,478
Intangibles             
 resulting from         
 business               
 acquisitions....             --        17,733
Investment in           
 Galbreath.......             --           --
                        
Investments in          
 real estate            
 ventures........             --        15,849
Long-term               
 receivables,           
 net.............             --         4,878
Other assets,           
 net.............             --         1,012
                          -------     --------
                          $ 5,985     $166,411
                          =======     ========

LIABILITIES AND PARTNERS

Current                 
 liabilities:           
 Accounts payable       
  and accrued           
  liabilities....         $   --      $    --
                        
                                        24,011
 Accrued                
  compensation...             --         8,593
 Borrowings under       
  short-term            
  credit                
  facility.......             --        16,800
 Current                
  maturities of         
  long-term debt.          (9,332)(5)      --
                          -------     --------
 Total current          
  liabilities....          (9,332)      49,404
Long-term debt:         
 Subordinated           
  loans, less           
  current               
  maturities.....         (34,106)(5)      --
 Long-term credit       
  facility, less        
  current               
  maturities.....         (22,977)(5)      --
                          -------     --------
 Total long-term        
  debt...........         (57,083)         --
Other long-term         
 liabilities.....             --         1,171
                          -------     --------
 Total                  
  liabilities....         (66,415)      50,575
Partners'               
 capital/stockholders'  
 equity:                
 Common stock....              40 (4)      162
 Additional paid-       
  in capital.....          72,360 (4)  115,674
 Retained               
  earnings.......             --           --
 Predecessor            
  Partnership's         
  partners'             
  capital........             --           --
 Galbreath              
  owners' equity.             --           --
                          -------     --------
 Total partners'        
  capital/              
  stockholders'         
  equity.........          72,400      115,836
                          -------     --------
                          $ 5,985     $166,411
                          =======     ========
</TABLE>

- -------
(1) The "Historical" columns represent the combined balance sheet of the
    Predecessor Partnerships as of March 31, 1997, and the combined balance
    sheet of Galbreath as of March 31, 1997.
(2) These adjustments give effect to the distribution of certain assets and
    liabilities, including assets and liabilities associated with Galbreath's
    tenant representation and investment banking units, which will be made in
    connection with the merger of Galbreath with the Company and the repayment
    of debt in connection with the merger of Galbreath with the Company. Such
    business units were not retained as they did not meet the strategic
    objectives of the Company.
(3) These adjustments give effect to the issuance of 12,200,000 shares of
    Common Stock in exchange for all of the outstanding partnership interests
    of the Predecessor Partners in connection with the Incorporation
    Transactions.
(4) This adjustment gives effect to the receipt of $72,400 of net proceeds
    from the issuance of 4,000,000 shares of Common Stock in the Offering (at
    an assumed initial public offering price of $20.00 per share).
(5) This adjustment gives effect to the repayment of the Dai-ichi Notes and
    the Long-Term Facility. See "Use of Proceeds."
(6) These adjustments give effect to the allocation of the purchase price of
    Galbreath of $29,293 to identifiable assets and liabilities at their
    estimated fair values. The excess purchase price of $29,564 was allocated
    to management contracts ($5,913) and goodwill ($23,651), which are being
    amortized over 8 years and 40 years, respectively, based on the Company's
    estimate of useful lives. The Company's estimate of useful lives was based
    on the nature and terms of management contracts acquired, Galbreath's
    existing client relationships, operating history and market presence, and
    the Company's operating experience within the industry. Due to the nature
    and expected recovery of assets and settlement of liabilities, historical
    stated value approximates fair value. Estimated current and long-term
    obligations resulting from the merger of $886 and $163, respectively, have
    been recorded as liabilities and additional goodwill and intangible
    assets. Upon conversion to a corporation, Galbreath will recognize a
    deferred tax asset of $179 which has been deducted from goodwill and
    intangible assets.
(7) This adjustment represents management's estimate of the fair value of
    Galbreath of $29,293, including transaction related costs of $507, which
    is based upon the estimated fair value of the consideration received by
    the Company which was based on a discounted EBITDA analysis. Such value is
    consistent with the value used to execute cash purchase and sale
    transactions by the Employee Partnerships at December 31, 1996.
 
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