1.Executive Summary The case study has been approached from different valuation methods to ascertain if there is value in the acquisition of Southern Comfort. These methods all yield the same result‚ i.e. Southern Comfort is expensive at the asking price of $94.6million. The valuation methods also examined the reasonableness of the acquisition using methods such as Free Cashflow Analysis‚ Book Value methods and Price Earnings ratios analysis The qualitative aspects have also been analysed to
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SO-199-01 Southern Comfort How did the movie made me feel? It was a warm feeling. The first ten minutes of the video showed this close knit family eating outside and that alone I admired. And I when I found out that his connection to his “chosen family” was so strong to come to his aid when he woke up in a pool of his own blood I began to admire the family even more. I assumed that that the life of a transgender person was hard. That was a given because it is human nature to fear or to hate what
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1) Why is Brown forman considering buying Southern Comfort? In your answer consider the strategic motives of Brown and the arguments in favour of and against the acquisition. One of the strongest arguments for Brown Forman to acquire a new company is their strong balance sheet. The reason behind a strong balance sheet is because of a continued close attention to asset management. Brown Forman has a low debt/equity ratio‚ over the past few years the company has placed itself in an outstanding financial
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| Brown-Forman Board Report | Potential Acquisition of Southern Comfort Corporation | | This board report summarizes the arguments for why it is believed that the acquisition of Southern Comfort Corporation (including Caligrapo Inc.) is a strategic fit that will increase shareholder value through increased sales and profitability | | Vinny Perumal | 3/7/2011 | | CONTENTS 1. Executive Summary 2 2. Background 3 1.1 An Industry Analysis 3 1.1.1 A Mature Industry
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is well-known and documented within the 2001 independent film “Southern Comfort” is that over the next year‚ more than a dozen medical providers refused him treatment due to the fear of reputation harm caused by taking on the care of a transgender male. By the time the Medical College of Georgia Hospital accepted Eads for treatment in 1997‚ the cancer had metastasized to the uterus‚ cervix and other abdominal organs (Southern Comfort‚ 2001). Robert Eads died January 17‚ 1999 at the age of 53. Medical
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CASE 51: BROWN-FORMAN DISTILLERS CORPORATION 1. Why is Brown Forman considering buying Southern Comfort? As a leading producer‚ marketer and importer of wines and distilled spirits‚ Brown-Forman (BF) was the fifth-largest distiller in the United States. In the late 1970’s‚ the whiskey market declined and this presented BF with growth challenges in a mature market. BF’s response to market pressures and competition was to aggressively attempt into other faster growing divisions of the alcohol beverage
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Question One: Why is Brown Forman considering buying Southern comfort? Brown-Forman Distillers Corporation is in a favourable financial position and is performing well relative to their competitor’s. In 1978‚ Brown-Forman holds a higher profit margin‚ higher growth rate and a higher anticipated return on sales for the remainder of 1978. According to the annual report for the 1978 financial year‚ the company highlighted that the business is in a positive position where the balance sheet shows strong
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very dependent on it gaining access to foreign markets. This case supports the view that Southern Comfort is an attractive horizontal acquisition for Brown-Foreman with the following pros and cons. PROS 20% of the Southern Comfort sales were overseas. Its exports market also had the highest 5 year compound growth rate than its other markets The company developed a distinctive brand with loyal customers Southern Comfort being a liqueur does not need to age and can be produced and sold
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Jaquita Welch Casual Comfort MGT 440 October‚ 2‚ 2014 1. Pro Forma Income Statement REVENUE 1998/1999 Gross sales $30000 Less sales returns and allowances 0 Net Sales 30000 Total Cost of Goods Sold $18000 Gross Profit $12000 OPERATING EXPENSES Selling Salaries and wages $10‚000 Office Supplies 50 Advertising 1000 Depreciation 0 Shipping 400 Total Expenses
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Comfort Zone Early in September 1991‚ Gerry Conley was starting his second week as Chief Financial Officer of Comfort Zone. An experienced financial manager‚ Mr. Conley was well aware that Mike Cousins‚ President of Comfort Zone‚ had hired him to "put the company’s financial house in order." However‚ despite a week of non-stop discussions with other company executives‚ all he had found out about Comfort Zone’s financial situation was that suppliers were clamoring for payment and that cash was available
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