Case Study
Padgett Paper Products
Baker College
Abstract
This paper will explore Padgett Paper Products current condition, and move into the
the future condition. We will explore the obstacles that this company needs to
investigate, and further build on it in order to be successful. Padgett Paper wants to
borrow money from current financial institution, and we will also look at the
alternatives available for this company. The objective is to find an acceptable debt
structure that will minimize lender risk, and increase the company value.
Padgett Paper is a closely held public company, which manufactures items such as
stationary, notebooks, file paper. There is also a seasonal demand for their products.
Padgett Paper Company is 100 years old, and the ownership remained primarily
With the descendants of the founders.
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Padgett Paper Case Analysis
There seems to be some issues with Management with Padgett Paper.
The Management has a lack of understanding regarding the current structure of the
the business, and knowledge of the firm value. This company has high levels of equity
equity, and is not maximizing the financial possibilities. Management wants to take on
more debt, but the management needs to find a way to have the lender structure the debt.
Diversification is a risk management technique that mixes wide variety of investments
within a portfolio in order to minimize the impact that any one security will have on an
overall performance portfolio. Diversification is the most important component in
helping the company reach long range financial goals while they minimize the risk.
The current structure of the business, and knowledge of the firm value. This
company has high levels of equity, and is not maximizing the financial possibilities.
Management wants to take on more debt, but the management needs to find a way to
have the lender structure the