Palamon Capital Partners/TeamSystem S.P.A. 1. Valuation of TeamSystem S.P.A. using Free-Cash-Flow-to-Equity Model (FCFE) (1) Calculate Free cash flow to equity per year: FCFE = NI – (CAPX – DEPR) –NWC + Net Borrowing (2) Discount Rate / Equity Rate: Elson estimated discount rate to be 14%. (Source: Elson believed that a 14 percent discount rate would appropriately capture the risk of the cash flows.) (3) Present Value: Note: the company is expected to grow by 6% forever since
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*TAG Partners System*‚ Inc. TAG’s business plan is to provide small trucking companies complete back office solutions and strategic alliances to eliminate the competitive advantage large trucking companies’ benefit from. The small trucking companies will receive greater revenue per mile and have lower operational expenses through TAG’s services‚ which are gained by leveraging a large client base‚ forming strategic alliances‚ and implementing their software. TAG’s management team is offering
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APAX PARTNERS AND XERIUM S.A. 1. What tactics/actions did Apax take to enable it to acquire BTRP in an auction without over-paying? How did Apax add value to Xerium? Apax took a well-designed strategy to bid for Xerium. First‚ they understood it was not a competitive auction. Secondly‚ they took advantage of the momentum and circumstances of the seller that was under distress. Finally‚ they spent huge resources to analyze and calculate the value of Xerium to Apax. First‚ they analyzed
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2012 Luxury Goods Worldwide Market Study (11th Edition) Milan‚ 15th October 2012 This information is confidential and was prepared by Bain & Company solely for the use of our client; it is not to be relied on by any 3rd party without Bain’s prior written consent Executive Summary WHY • The global luxury goods sector has continued to soar to post-crisis heights in 2012‚ with its third year of double-digit growth - Globally‚ luxury goods sales are expected to reach an estimated €212 billion
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Case 18: Worldwide Paper Company INDIVIDUAL QUESTIONS Case Questions: 1. What are the yearly cash flows that are relevant for this investment decision? Do not forget the effect of taxes and the initial investment amount. (Submit an excel spreadsheet into D2L containing your computations.) Worldwide Paper Company (WPC) has an opportunity to take on a new project. With this project they would be considering an addition of a new on-site Longwood wood yard. The yearly cash flows for this investment
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The two nations leading worldwide exploration are Spain and Portugal. There were many reasons that made Spain and Portugal the forerunners of worldwide exploration. Spain and Portugal‚ both located off the Iberian Peninsula‚ had a geographical advantage over other nations. This Peninsula allowed easy access into the Atlantic‚ which made it much easier to launch expeditions to the Americas. Spain and Portugal both sought out economic growth which led them to seek out new trade routes‚ leading to resources
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What is the best solution to solve the worldwide plastic bag problem? As time goes by‚ the situation with our planet becomes worse. People are the main cause of the already damaged environment and unfortunately a lot of them do not even realize that they harm their own home. One of the biggest problems that have deteriorated is the plastic bag problem. It is a growing menace to humans and the consequences of it can be very bad. For example‚ plastic bags are made of petroleum‚ and when
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The global market for lubricants is expected to reach USD 70.32 billion by 2020‚ according to a new study by Grand View Research‚ Inc. lubricants are widely used in the automotive industry for their benefits and relative lower cost. Hence‚ the growth of automotive market and industrial production‚ mainly in the emerging economies of Asia Pacific and Latin America is expected to boost the lubricant demand over the forecast period. Industrial lubricants emerged as the leading product segment in
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Case 19 1. Worldwide Paper Company has an opportunity to take on a new project. With this project they would be considering an addition of a new on site Longwood wood yard. The yearly cash flows for this investment seem to be very good if everything remained or exceeded the assumptions on which the cash flows $18 million is not a small investment but in the long run the company catching up to get back the invested money and also allowing them to make huge profits. The company is paying a 40% tax
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‘roti’ or ‘Parata’ for breakfast. But consumers are becoming more health conscious and somewhat multi-cultural (in a way consumer’s are trying to adopt other cultures and eating habits) these days and that is where our focus is to emerge our breakfast cereal product with the changing culture. ii. Social: In addition to cultural factors‚ a consumer’s behavior is influenced by such social factors as reference groups‚ family‚ and social roles and statuses. In this context‚ reference groups
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