Chapter 01 Intercorporate Acquisitions and Investments in Other Entities Multiple Choice Questions In order to reduce the risk associated with a new line of business, Conservative Corporation established Spin Company as a wholly owned subsidiary. It transferred assets and accounts payable to Spin in exchange for its common stock. Spin recorded the following entry when the transaction occurred: [pic] 1. Based on the preceding information, what number of shares of $7 par value stock did Spin issue to Conservative? A.
BECU Trust Company is a BECU’s confidential trust and investment management services help make life simpler when a member wants assets managed on his or her behalf (becu.org/wealth-management/trust-services.aspx). After nearly eight years launching through BECU, BECU Trust announced its plans to merge with MEMBERS Trust Co. where BECU Trust will gain ownership interest in MEMBERS Trust. If the plans are approved, the merger would make BECU one of the industry’s largest credit union-owned trust company (Samaad, July 20,
Business Strategy Crown Cork and Seal Company, Inc. Matt Burnet 6 Oct 2009 Business Strategy Matthew Burnet Page 1/4 Student # 306657 Business Strategy Case Study Crown Cork and Seal Company, Inc 1. In 1977 there were 100 firms operating in the metal container industry, worth $7.1 billion, with the top four manufactures holding 52% market share. Industry growth was relatively modest, managing only 3.3% CAGR between 1967 and 1976. However, soft-drink and beer cans segment grew at a CAGR of 8.8% during this period, with ongoing high growth expected. The industry is moderately capitally intensive - up-front investment of $10-$15 million per line (two-piece cans), with instillations ranging from 1 to 5 lines.
* Should Berkshire Hathaway's shareholders endorse the acquisition of PacifiCorp? * Would the PacifiCorp acquisition serve the long term goals of Berkshire Hathaway? * Was the bid price appropriate? * Because PacifiCorp was privately held by Scottish Power, how did Berkshire`s offer measure up against the company`s valuation implied by the multiples for comparable firms? Regarding Mr. Buffett`s investment philosophy, my disagreement points lays mainly in the per-share basis which he truly believes, diversification and risk and discount rate points.
The recent corporate strategy of BP was Diversification, the launch of Stockbridge of internal public securities investment fund. The investment strategy Stockbridge is: * Publicly traded securities in 10-20 U.S. firms * Period: 3-5 years * Not deep value investors * Not high value, short term * Why does BP’s corporate strategy lead to superior returns? Because Berkshire’s investment process was hightly selective. They only selected less than 60 out of thousand investment opportunities, performed extensive industry and company due diligence process to select the good company. * What is their portfolio?
Planning to adopt a value-based performance metric? Think it will help you make smarter acquisition decisions? Okay, chew on this: If EVA is so smart, how come it didn't prevent EVA poster child The Quaker Oats Co. from making its disastrous $1.7 billion purchase of Snapple Beverages Co. in late 1994--which it was forced to sell two years later for a mere $300 million? Answer: Quaker didn't use EVA to calculate its $14-per-share offering price for Snapple. According to company spokesman Mark Dollins, Quaker uses a discounted cash flow model to evaluate acquisitions and divestitures, and merely uses EVA as an incentive compensation tool.
Hertz Corporation (A) Harvard Case Solution & Analysis | Recommend this | | Considering leveraged buyout Hertz in 2005, the complex, high-profile deals, and a good example of best practice in private equity. First of two parts, the Hertz LBO, taking the point of view of Clayton, Dubilier & Rice, the leader of the consortium of private trading shares to buy Hertz from Ford in the auction. Set in the final round of the auction, a pressing issue for the consortium is how to raise your previous bet. Reasonable rates should be based on how many of the private equity consortium could create by improving global operations Hertz, on the one hand, and a more efficient capital structure, on the other. Presents detailed descriptive information on both topics, but does not include detailed financial projections, to be formulated by students or supplied for the purposes of discussion, the teacher.
Herman Miller: A Case of Reinvention and Renewal Herman Miller Furniture Company was one of four organizations and the only non-high technology company named as one of the “100 best companies to work for” and “Most Admired companies,” in Fortune magazine. It was also one of the “Most Innovative Companies” in Fast Companies magazine in both 2008 and 2010. It had approximately 278 applicants for every job opening in 2010. The company promotes within and considers the employee’s as vice presidents. Herman Miller top executive salaries were not more than 20 times the average wage of the line worker.
Nucor is North America’s largest recycler, 17 million tons in 2010, and uses the scrap steel as the raw material to produce steel and steel products [ (SEC filings Nucor Corporation Form 10-K, 2011) ]. Employing multiple approaches, Nucor’s growth strategy is flexible and allows them to capitalize on the growth potential. “The four prongs of that growth strategy have been: (1) optimizing existing operations, (2) growing through developing greenfield projects that capitalize on new technologies and unique marketplace opportunities, (3) acquiring other companies that will strengthen Nucor's position as North America's most diversified producer of
All three options are discussed in detail in the following sections to explain the rationale behind this recommendation. If Bernard does choose to proceed with partnering in this venture, IC would also suggest the following adjustments in order to add value to his investment: 1. IC agrees with the suggestion of Bernard’s friend Bouchek to obtain more ownership and control of the business if Score-eStore.com becomes viable. We believe that Bernard’s idea of adding a clause in the start-up documents would allow him to pay an estimated $250,000 to buy additional shares of 17% in the company at the 18 month mark; thus giving him a controlling share of the company. 2.