Premium Essay

John M Case

In:

Submitted By zeeshan12
Words 3693
Pages 15
JOHN M. CASE COMPANY
Mergers and Acquisitions

OCTOBER 6, 2015
FINA 5513D - MERGERS AND ACQUISITIONS
Syed Ali Ahmad (100978220), Long Thanh Dinh (100986227) Zeeshan Halim (100986227)

Table of Contents
Executive Summary .................................................................................................................. 2
Why the J.M.C. Company is an Attractive Target for the Firm’s Management ............... 3
Why purchase the J. M. C. Company by LBO ...................................................................... 4
Target Selection ...................................................................................................................... 4
Industry ................................................................................................................................... 4
Improve Operational Performance .......................................................................................... 5
Management Competence ....................................................................................................... 5
Valuation of the LBO................................................................................................................ 6
LBO Financing Structure......................................................................................................... 7
Ownership Retention ................................................................................................................ 8
Expansion Plan .......................................................................................................................... 8
Recommendation....................................................................................................................... 9
Appendix B– Simplified Balance Sheet for Restructuring the J.M.C. Company ................. 11
Appendix C– Borrowing

Similar Documents

Free Essay

John M Case Company

...1. ¿Es John Case una excelente oportunidad de inversión? Abordar el análisis de esta cuestión supone realizar un doble análisis: I. por una parte la rentabilidad de la sociedad hasta el momento de la toma de decisión y II. en segundo lugar, realizar unos estados financieros previsionales más un cuadro de financiación a fin de analizar el comportamiento futuro de la sociedad bajo los supuestos que se describen en el caso. Empecemos pues por el primero de los puntos: ¿Cuán rentable o buen negocio ha sido John M. Case Company si analizamos la empresa en marzo de 1985 (es decir, en el momento en que los cuatro directivos emprenden la decisión de compra)? Para ello, analizaremos los Estados financieros que nos aporta el caso. Con este análisis pretendemos conocer si la sociedad obtiene beneficios, cómo está compuesto el balance de la sociedad, y cómo evoluciona el cash flow de la misma, a fin de determinar si hay problemas económicos y/o financieros (operativos u estructurales). CUENTA DE RESULTADOS HASTA 31-12-1984 |Cuenta de Resultados de John M. Case Company | |en miles de dólares | | | | | | |ACTIVO |1984 | | | ...

Words: 814 - Pages: 4

Premium Essay

John M. Case Company

...Overview History/Growth This case concerns the John M. Case Company, which at one time was the leading producer of business calendars in the United States. The company was founded by the grandfather of John M. Case in 1920 and was inherited in 1951. The company had experienced profitable operations every year since 1932, and held approximately a 60-65% market share by 1984. Sales had been increasing annually at about a 7% compound rate, and the return on average invested capital was about 20%. The cost structure of the company was 100% equity, owned solely by Mr. Case. The capital budget was the leftover earnings generated from internal operations minus the amount Mr. Case wished to withdrawal as income (dividends) for the year. Also, the seasonal accumulation of inventories and receivables were financed internally (although they did hold lines of credit worth $2 million at major banks). Strengths/Weaknesses Strengths of the company were its market share and production process, which created great economies of scale and allow extremely efficient and low cost production. Even though it was subject to a business with highly seasonal sales, concentrating the sales in the middle six months of the year and giving moderate discounts (for early delivery) could help get around most of the risks. Even though the company focused on high-quality customer service and a high-quality product, there were believed advantages from a marketing viewpoint. Since the...

Words: 1287 - Pages: 6

Premium Essay

Essay On Hop Frog

...Characterization of Hop Frog "Hop Frog," a short story by Edgar Allan Poe, takes place in the castle of a corpulent king who is very fond of practical jokes. Hop Frog, a jester, and his friend Trippetta are kidnapped and forced to be slaves for the king. The tyrant king oppresses Hop Frog, who is a crippled dwarf. When the king strikes Hop Frog's friend Trippetta with a goblet of wine, Hop Frog vows revenge on the king and his ministers (Poe 17), revealing his heroism and bravery. Thus, vengeance is justifiable when the victim, who in this case is the king, oppresses others for their disabilities, as shown through Hop Frog’s characterization. In the story, the king and the seven ministers treat Hop Frog far worse than Trippetta, fueling Hop-Frog’s contempt. Although both are dwarves, Trippetta is seen by the king and his ministers as graceful and exquisite. They do not...

Words: 1236 - Pages: 5

Free Essay

Manager

...Possible Questions National Geographic Society 1. Fahey remarks about magazine piles “ that has come to haunt people today don’t want clutter. Comment? 2. How can Fahey promote cross functional and cross divisional collaboration by bringing radical changes in business model from paper to digital. 3. What should be the best strategy for fahey to integrate the media and magazine by transforming the culture, behavior and value of a legacy organization. 4. In 1994 Fahey was CEO of ‘Life Time’ ironically facing same challenges with earlier generation of media and technology. Fifteen years later same person is seen as elite general manager at work in a completely different organization. Has his thinking and management style changed? 5. Whom should the e commerce boss report to? How to transform a 123-year-old cultural icon and prepare it for the digital world? Slowly, Key concepts include: 1. Practitioners need to understand the power of the history of their own organizations in order to effect change. 2. Making transformational changes at the National Geographic Society involved pulling management levers to alter a deeply ingrained culture, develop new organizational capabilities, and design a compensation structure aligned with new values. 3. A one-size-fits-all approach to management doesn't work. General managers encountering similar problems in different organizations may need different solutions to solve them. That has come back to...

Words: 1523 - Pages: 7

Premium Essay

Probablility of Appeals and Reversals

...given questions. Following is the given problem. 1. The probability of cases being appealed in each of the three different courts. 2. The probability of cases being reversed in each of the three different courts. 3. The probability of cases being reversed given an appeal in each of the three different courts. 4. The probability of a case being appealed for each judge. 5. The probability of a case being reversed for each judge. 6. The probability of reversal, given an appeal for each judge. After these six questions have been answered then a ranking of the judges can be accomplished. The numbers being used in each of the calculations is coming from the excel worksheet that is attached. The last question of the given problem follows. Rank the judges within each court for each of the probabilities in 4 - 6. Then, find the sum of the ranks and get an overall ranking for each judge. Evaluate and discuss the meaning of your results. Results The following results are based on the calculations found on the attached Excel spreadsheet. The probability of cases being appealed in each of the three different courts uses the formula of: P(appeal)=Total number of cases appealed/total number of cases disposed. The results are as follows. Court Appeal Probability Common Pleas: 0.04010 Domestic Relations: 0.00348 Municipal: 0.00461 The probability of cases being...

Words: 2309 - Pages: 10

Premium Essay

Title

...CASE STUDY ASSIGNMENT Length: 1,500 – 2,200 words You must use in-text referencing You must provide a reference list, formatted in Harvard Style, at the end of your assignment You must use a minimum of five references The references are giving with the questions Purpose: shows capacity to apply, the course concepts to real world cases. Increasingly, workplaces are looking for employees who can add value by providing insightful understandings about ways in which the organization can identify risks and respond to opportunities. PLEASE NOTE: YOU WILL BE REWARDED FOR ANSWERING THE QUESTIONS, NOT FOR COPYING AND PASTING! Marks are allocated to insightful answers, not to the number of words in an answer. If you, for instance, copy and paste a one page summary of Kouzes and Posner’s five leadership practices, that will not earn you a single mark because that does not demonstrate any understanding of those five practices. You will not be asked ‘memory’ questions such as “What are the five key leadership practices of Kouzes and Posner?” Nor will you be asked: “What are the four quadrants of the CVF?” Nor will you be asked: “What are the four primary practices of the 4+2 formula?” Instead, you will be expected to know the answers to such questions and USE that knowledge to answer the case study questions. Please make sure that: • The wording is admirably clear and fluent. • The level of expression would greatly impress if it was read as an example of your writing by a potential...

Words: 679 - Pages: 3

Premium Essay

Miranda Rights Accused

...supposed to give John Miranda rights. The rights involve explaining to John that whatever he said at that moment could be used against him in court. They should also let him know that he has a right to counsel. Miranda rights were created in 1966 and anybody in police custody like John is entitled to them. In case John needs an English interpreter, the rights say that he is entitled to one too. An equal protection clause together with a due process is therefore owed to John even though he is illegally in the country. If a suspect is not warned about their rights, any information got from them could be suppressed in a proper motion; it cannot therefore be used against them (Batra, 2009). The detectives were therefore not supposed to conduct an interview on him before explaining the Miranda rights to him....

Words: 618 - Pages: 3

Free Essay

Sadasdd

...Case Studies Solutions Case Studies Solutions,Article Writing,Assignments,Research Work,Home Work MenuSkip to content Home How We Work ? Refund Policy How to Order ? Disclaimer Contact Us Finance Cases List POSTED ON MARCH 8, 2013 Hello, If u want us to solve any case study from below list, do contact us anytime, We are here to provide the experience, expertise, and professionalism that you are looking for , Our tutors are available 24/7 to assist you what you need, Click Here to submit your Order. ======================================================================================= Acquisition of Consolidated Rail Corp. by Benjamin C. Esty Airbus A3XX: Developing the World’s Largest Commercial Jet by Benjamin C. Esty American Chemical Corp.by William E. Fruhan, John P. Goldsberry American Home Products Corp.by David W. Mullins AQR’s Momentum Funds by Daniel B. Bergstresser, Lauren H. Cohen, Randolph B. Cohen, Christopher Malloy Arundel Partners: The Sequel Project by Timothy A. Luehrman AXA MONY by Andre F. Perold, Lucy White Beta Management Co. by Michael E. Edleson Butler Lumber Co. by Thomas R. Piper Cartwright Lumber Co.by Thomas R. Piper Citigroup 2007: Financial Reporting and Regulatory Capital by Edward J. Riedl, Suraj Srinivasan Clarkson Lumber Co. by Thomas R. Piper Cooper Industries, Inc. by Thomas R. Piper Cost of Capital at Ameritrade by Erik Stafford, Mark L. Mitchell Debt Policy at UST, Inc. by Mark L. Mitchell Dell’s Working Capital...

Words: 3635 - Pages: 15

Free Essay

Accounting

...Click here to download the solutions manual / test bank INSTANTLY!! http://testbanksolutionsmanual.blogspot.com/2011/02/accounting-information-systems-romney.html ------------------------------------------------------------------------------------------------------------------------ Accounting Information Systems Romney 11th Edition Solutions Manual Accounting Information Systems Romney 11th Edition Solutions Manual Accounting Information Systems Romney 11th Edition Solutions Manual Accounting Information Systems Romney Steinbart 11th Edition Solutions Manual Accounting Information Systems Romney Steinbart 11th Edition Solutions Manual ------------------------------------------------------------------------------------------------------------------------ ***THIS IS NOT THE ACTUAL BOOK. YOU ARE BUYING the Solution Manual in e-version of the following book*** Name: Accounting Information Systems Author: Romney Steinbart Edition: 11th ISBN-10: 0136015182 Type: Solutions Manual - The file contains solutions and questions to all chapters and all questions. All the files are carefully checked and accuracy is ensured. - The file is either in .doc, .pdf, excel, or zipped in the package and can easily be read on PCs and Macs.  - Delivery is INSTANT. You can download the files IMMEDIATELY once payment is done. If you have any questions, please feel free to contact us. Our response is the fastest. All questions will always be answered in 6...

Words: 18533 - Pages: 75

Free Essay

Dysphagia Management for School Children: Dealing with Ethical Dilemmas

...The Case of Hillary Hillary is a 6-year-old with severe cerebral palsy and cognitive disability. Hillary has been attending a private school for children with developmental disabilities and severe handicaps for the past 2 months. According to her record, the student has a history of oral-pharyngeal dysphagia with silent aspiration and several bouts of pneumonia in the past 2 years. She has a PEG tube by which she receives her nutrition, hydration and medications. One morning Hillary’s home-room teacher approached the speech-language pathologist with a note written on a prescription paper ‘ordering’ oral feeding for Hillary while she is at school. The speech-language pathologist, John, is very concerned. He feels that it would be against professional standard to allow Hillary to eat orally. John feels that Hillary’s mother and physician do not have the student’s best interest at heart. Dysphagia Intervention in Schools As more students with chronic conditions receive their care in a traditional school setting, the speechlanguage pathologist is required to have a medical knowledge base for pediatric communication and swallowing disorders. Dysphagia intervention is becoming a more prominent component of the caseloads of speech-language pathologists who practice in the school setting. While this can be a rewarding challenge, scenarios in which clinicians find themselves can also have a more acute feel when managing a feeding tube and/or risk for aspiration...

Words: 2116 - Pages: 9

Free Essay

Cisc vs Risc

...A Tale of Two Processors: Revisiting the RISC-CISC Debate Ciji Isen1, Lizy John1, and Eugene John2 1 ECE Department, The University of Texas at Austin ECE Department, The University of Texas at San Antonio {isen,ljohn}@ece.utexas.edu, ejohn@utsa.edu 2 Abstract. The contentious debates between RISC and CISC have died down, and a CISC ISA, the x86 continues to be popular. Nowadays, processors with CISC-ISAs translate the CISC instructions into RISC style micro-operations (eg: uops of Intel and ROPS of AMD). The use of the uops (or ROPS) allows the use of RISC-style execution cores, and use of various micro-architectural techniques that can be easily implemented in RISC cores. This can easily allow CISC processors to approach RISC performance. However, CISC ISAs do have the additional burden of translating instructions to micro-operations. In a 1991 study between VAX and MIPS, Bhandarkar and Clark showed that after canceling out the code size advantage of CISC and the CPI advantage of RISC, the MIPS processor had an average 2.7x advantage over the studied CISC processor (VAX). A 1997 study on Alpha 21064 and the Intel Pentium Pro still showed 5% to 200% advantage for RISC for various SPEC CPU95 programs. A decade later and after introduction of interesting techniques such as fusion of micro-operations in the x86, we set off to compare a recent RISC and a recent CISC processor, the IBM POWER5+ and the Intel Woodcrest. We find that the SPEC CPU2006 programs are divided between...

Words: 7813 - Pages: 32

Free Essay

Meno

...other leading Thessalians. Specifically, he got all of you into the habit of giving sweeping and confident answers to any questions put to you – as if you were all experts. In fact, he himself was always ready to answer any question put by any Greek; all questions answered. On the other hand, here in Athens, my dear Meno, the opposite is the case. Here it’s as though there were a wisdom drought; it has all drained away to where you come from. So if you want to put this sort of question to one of us, everyone will have a good laugh and say to you: ‘Good stranger, you must think I am a lucky man, to know whether virtue can be taught or not, or where it comes from. Me, I’m so far from knowing whether virtue can be taught or not that I don’t even know what it is.’ I’m just as badly off as all my fellow citizens in this regard, Meno, and I blame no one but myself for my utter ignorance about virtue. For if I don’t know what something is, how could I know what it’s like? Unless you think someone who has no idea who Meno is could know whether he is handsome or rich or a real gentleman, or just the opposite? Do you think that would be posible? M: I don’t;...

Words: 13650 - Pages: 55

Premium Essay

Earning Management

... | | |cass.lai@nottingham.edu.cn | |Office Hours |Dr. Kevin Dow: Th, 2:00 pm - 4:00 pm, every Thursday until Exams (except December 11 and 25) | | |Cass Lai: Th, 2:00 pm - 4:00 pm | KEY POINTS • This is a Level 3, 10 credit module; • Assessment basis: a one and a half hour Examination (100%); • Keywords: Audit; Governance; Corporate Scandals; Audit Theory and Practice; Accountability; • Pre-requisite module: P12307 Financial Reporting. MODULE AIMS To use a mix of textual and case-based material to examine the role of the audit as a means of ensuring accountability in organisations and society, and hence develop knowledge of the purpose, structure and limitations of the audit process. To critically evaluate the role of related functions within overall governance structures. LEARNING OBJECTIVES AND OUTCOMES Knowledge and understanding This module develops a...

Words: 1810 - Pages: 8

Premium Essay

John Mackey and Whole Foods Market

...Short Case Study Analysis Outline Brittany Coleman Professor Drake Mullens Business Strategy October 29th, 2012 Question #1 What are the chief elements of the strategy that Whole Foods Market is pursuing? Is the strategy well matched to recent developments and conditions in the natural and organic foods segment of the food retailing industry? As two young hippies in the late 70’s, John Mackey and his girlfriend opened an all natural food market in Austin, Texas. The store blossomed successfully, with several more opening in surrounding towns. Each store produced accordingly and did well, however, Whole Market Foods big rise didn’t come until after 1992, when John Mackey made the decision to start buying natural food retailers all over the United States. With this demanding statement, Whole Foods Market made a startling presence in the produce aspect of things. John Mackey makes Whole Foods Market thrive with his strange but successful tactics that he uses. Instead of completely changing every store that he buys out, or market he takes over, he takes unique tendencies that each has and uses it to help the original better. Over 70% of Whole Foods Market were made from complete scratch, giving each one its own personality. Whole Foods Market main goal is to provide the most naturally produced and preserved foods that they can, in the most appealing and presentable way that they can. The fact that John Mackey is consistently open to new change for the profit...

Words: 1662 - Pages: 7

Free Essay

Organizational Behaviour

...the limited information or immediate impressions of employee performance could result in an inaccurate perceptual judgment made by the employers. In an attempt to explain the ways in which people form perceptions about each other, this essay will examine the influence of the attribution theory towards decision-making and illustrate three common biases and errors that distort the attribution formation through the application of three mini-case. This essay will also discuss the importance of attribution theory in relation to organizational behavior as well as decision-makers in organizations. Attribution theory is concerned with how individuals perceive and infer causality (Robert E. Ployhart and Crystal M. Harold, 2004). Johns et al. (2007) also state that the attribution theory is an attempt when individuals observe behavior to determine whether it is internally or externally caused. Internally caused behaviors refer to the behaviors which are under individual control while externally caused behaviors are the result of outside causes (Johns et al. 2007). To distinguish whether the behavior is one’s own outcomes or others’ actions, Robert E. et al. (2004) applied three pieces of information which originate from the Kelly model to infer causality: first of all, distinctiveness refers to the uniqueness of the event; secondly, consensus refers to the commonness of the event; thirdly,...

Words: 1239 - Pages: 5