The Loewen Group Inc. Case Report – Session 3 Group 6 Executive Summary This report provides a qualitative analysis of the Loewen case study‚ starting from the excessive debt policy used in its expansion and ending with huge debt ratios and bankruptcy. The analysis includes the effect of the company’s policy and the financial distress it caused and results of such a financial condition. Method of Analysis: For the analysis we have used the historical financial data of the company‚ the
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Financial Report of Loewen Group Inc. The Loewen Group Inc. was founded in 1969. The company has two major headquarters in North America‚ one in Burnaby‚ British Colombia and a second in Cincinnati‚ Ohio. Loewen Group Inc. (L.G.I.) is the largest funeral services enterprise in Canada and is the second largest company in the North American Funeral Services Industry. L.G.I. owns 918 funeral homes and 269 cemeteries and also engages in the pre-need selling of funeral services including cemetery
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Case Summary of the Loewen Group Inc Summary: The Loewen Group inc.‚ headquartered in Burnaby‚ British Columbia‚ is the second largest funeral service company in North America. Loewen operated and owned over 1100 funeral houses cross every corner of the world and more than 400 cemeteries in U.S. and Canada. By acquisitions in last twenty years‚ Loewen has been grown explosively. Just before the time the company went to bankruptcy‚ the company’s consolidated revenue had grown 30 percent per year
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Opportunities Threat of new entrants: The barriers to entry are high due to high fixed costs‚ lack of history in the local community‚ zoning regulation‚ and "not-in-my-back-yard" protests. Power of suppliers: Funeral consolidators such as Loewen group can put a great deal of pressure on suppliers to reduce prices. Power of buyers: The funeral home is usually the buyers first point of contact‚ therefore the funeral home has first chance at selling all related services and supplies. Product
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The Loewen Group Inc. (Abridged) Case Summary After decades’ dramatically expansion‚ the Loewen Group Inc‚ the second largest death care company in North America‚ went downhill abruptly in 1998. Compared with those in 1997‚ its net income decreased from $42.7 million to $599 million in deficit‚ meanwhile‚ its long-term debt due in one year increased by more than 2000%‚ from $43.5 million to $874.1 million‚ and total liabilities exceeded the total assets by $326.8 million (in US dollar). Because
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9-201-082 REV: MARCH 4‚ 2002 op yo The Loewen Group‚ Inc. (Abridged) In March 1999‚ John Lacey and the management team at the Loewen Group‚ Inc.‚ had to decide what course of action to take in light of the company’s imminent financial difficulties. On January 22‚ 1999‚ Lacey‚ a renowned turnaround specialist‚ was appointed chairman of Loewen‚ the second largest death care company in North America. Headquartered in Burnaby‚ British Columbia‚ Loewen owned over 1‚100 funeral homes and more than
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The Loewen Group Memo To: Ray Loewen From: Dave Bassel cc: Professor Date: Re: SCI offer Dear Ray‚ Thank you for the opportunity to share my analysis with you regarding this most important topic. After giving careful consideration to the SCI offer and analyzing the bid from the view point of all Loewen stakeholders‚ I believe a rejection of the SCI offer is clearly warranted. We need to consider the long-term implications this would have on our stakeholders. Would they be better or worse off
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Loewen Group Over the last two decades Loewen Group‚ a death care provider‚ had been growing by acquiring small independent funeral homes and cemeteries in densely populated areas but in recent years the company had also acquired several large established funeral chains. Over the last five years alone‚ Loewen had embarked on an aggressive growth strategy which accounted for consolidated revenues’ growth of nearly 30% a year on average from $303 billion to over $1.1 billion. This growth through
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The Loewen Group Case Service Corporation International (SCI) has made an offer to purchase Loewen Group. The offer consists of paying $43 per share in a tax-free transaction. The total number of common shares at year end in 1995 (in thousand) are 48‚168. The cost of purchasing Loewen would be $43 x 48‚168 (in thousand) = $2‚071‚224‚000. The total amount of equity and debt for Loewen Group is approximately $3B. This includes the total non-current liabilities at approximately $1.15B. What
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Borders Group‚ Inc. Logistic Management OUTLINE The book industry Borders Group‚ Inc. Phantom Stockout Borders.com & Future Step Q&A The Book industry In book industry‚ the product variety was enormous with more than 50‚000 titles‚ the variety of formats in which books were available had also increased. (Audio‚ leather‚ hardcover‚ paperback‚ and e-book) The sales market of book industry in U.S.A 1.68 billion in 1960s The industry
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