whether Timken should acquire Torrington company from Ingersoll-Rand by cash‚ issuing share to public or issuing share directly to IR. IR wanted to divest Torrington and Timken aim to acquire it. After merging with Torrington Timken will be world third largest company in bearing industry and Timken would gain more sales as Timken and Torrington has about 80% of overlapped customer. Moreover after the synergy they can reduces cost‚ increase market shares and have more production lines. As Timken leverage
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Individual Case Brief-The Timken Company Main Issue The Timken Company was intended to acquire the Torrington Company from Intersoll-Rand (IR). If the acquisition succeeded‚ Timken would get synergies such as boosting world market share and cutting costs substantially. However‚ considering the large size of this acquisition‚ Timken would face the stress of below-investment-grade rating and series of future financing problems if IR required a cash deal. A feasible financing structure must be considered
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.......................................................................... 3 2. Timken’s Expectations from Torrington .............................................. 3 2.1 Operational Synergies.................................................................... 4 2.2 Financial Synergies ........................................................................ 5 3. Valuation .............................................................................................. 5 4. Debt capital
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USEC Capital Budgeting Case Questions In one paragraph (max 5 sentences)‚ describe the general situation faced by USEC: USEC is the lead supplier of enriched uranium‚ which is used to fuel nuclear reactors. Due to an expiring contract with a power supplier‚ the production of Uranium fuel became very expensive at the current Paducah plant. USEC created a new plant called APC in an attempt to advance technology and become the low cost producers in the Uranium industry. Mackovjak is a financial analyst
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THE TIMKEN COMPANY In 2002‚ The Timken Company was considering acquiring The Torrington Company from Ingersoll-Rand. The acquisition would make a clear statement to the market about Timken’s commitment to remain a worldwide leader in the bearing industry as it would result in the combination of more than 100 years of bearing manufacturing and development experience. Because the two companies shared many of the same customers but had few products in common‚ customers would surely appreciate the
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Case 13: The Timken Company Student Presentations – November 15‚ 2011 Participating groups: Sections 1 and 2 Section 1 Presentation groups Group 11 Group 12 Questioning groups Group 5 Group 13 Evaluating Groups Group 10 Group 1 Deadline for electronic submission of presentation slides and case reports Nov 14‚ 1:00 pm Deadline for electronic submission of questions Nov 15‚ 8:00 am Section 2 Presentation groups Group 11 Group 12 Questioning groups Group 5 Group 6 Evaluating Groups Group 10 Group
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VALUATION TECHNIQUES Vault Guide to Finance Interviews Valuation Techniques How Much is it Worth? Imagine yourself as the CEO of a publicly traded company that makes widgets. You’ve had a highly successful business so far and want to sell the company to anyone interested in buying it. How do you know how much to sell it for? Likewise‚ consider the Bank of America acquisition of Fleet. How did B of A decide how much it should pay to buy Fleet? For starters‚ you should understand that the value
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Equity Valuation: Discounted Cash Flow and Residual Income Models Introduction Valuation plays a very important role when companies are trying to increase their value‚ raise money‚ acquire another firm or sell a subsidiary‚ also when a company decides to go public. Managers‚ investors and shareholders need to have the most accurate and reliable information in order to make decisions‚ that is why valuation is a fundamental exercise in corporate finance. It is pretty evident that whatever
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Valuation : * Price earnings ratio : DESCRIPTION | Mar-12 | Mar-11 | Mar-10 | Mar-09 | Mar-08 | Price-earnings ratio | 23.04 | 24.23 | 12.71 | 7.25 | 12.17 | This ratio reflects the following factors : growth prospects‚ risk characteristics ‚shareholder orientation ‚corporate image and the degree of liquidity.It indicates company performance and forecast future performance.Ratio is decreasing and it is good sign because investors will get high earnings.But risk will
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project.” Gordon East‚ IT Manager‚ Timken Business Needs Timken‚ a 109-year-old company‚ is a longtime leader in the production of antifriction bearings and specialty steel. The company began as a carriage maker before the advent of the mass production of automobiles and now has offices in 27 countries and 25‚000 employees. Timken competes in a global marketplace that requires companies to adapt to ever-changing financial conditions. Executives at Timken were anxious to rebuild the company’s
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