Congoleum Case

It is a company with revenue of 52.5 M in 2005 with growth 3 % more than 2004.

2) One way that Hertz conforms to be an “ideal LBO candidate” is the proven financial performance and pretax profit the company has generated since 1967. In addition, from 1985 to 2005, revenues

The technology portion of their company has grown tremendously which has caused so much of their growth. In addition, they found the perfect formula to appeal to and retain customers. Most of their customers are loyal to their company and insist on sticking to their products. Their market capitalization, $639,922 million, is extremely high compared to other companies in their industry They returned about $8 billion to shareholders during their quarter. Also, their gross margins, currently at 38.01%, are high at passed by

The business has been profitable and has been able to gain a large market share because of those strengths.

Stable cash flows with estimated total revenues increasing from 559.9 million in 1978 to 937.8 million in 1984 (Note also its strong intellectual property as shown by

Excellent equity position: $820 Million cash on books so they are well positioned for growth.

established line of business. By 1984, the company, with an estimated 60% to 65% share of its market,

currently ranks as the number one industry leader as they have extended their market outside of

In terms of targeted niche, the company seems inimitability however the innovative products being offered by the company are still unique since other companies are still launching their business and are at initial stages.

controlled 37 percent of its market with revenue of about $1.2 million. Immediately after the

th century they had operations throughout 31 countries of the world. In 1978 Company had financial loss of US. $262.2 million .

In 2011, the company performed strongly – producing revenues of $134,264,000,000 and net income of $20,213,000,000. Financial data

The company is listed on the Johannesburg stock exchange with a market capitalisation of R 41 billion as of 30 September 2016 (Bloomberg, 2016). The magnitude of the market capitalisation makes it a

Many analysts would note that based on the consensus of the world population, the company’s equity is of the highest value as they are currently ranked as industry leader in market capitalization (source: Yahoo Finance) which conveniently brings me to my next evaluation.

The most important strength is their strong market position in the database domain. They have a strong research and development department capable of developing world class software. The acquisition of various companies in the areas of database, middleware and application helped them to have the best of the breed software product suite. Their management team is very effective and strong. Their products are well accepted by the market due to their robustness and quality. They have the best enterprise database software in the market with a strong market share. This helped them to be a monopolist in the enterprise database market. They have strong pricing power for initial license and maintenance tasks. They invest heavily for innovation and working hard to improve their cloud presence. Their worldwide presence and their geographical diversification offers them competitive advantage by covering international market. Oracle technology is used by large enterprise firms to small firms as system integrators, which makes Oracle software a critical component for enterprise deployments. Their balance sheet is strong and acquired companies as part of expansion strategy. Their software product line support horizontal and vertical scaling requirements. Their comprehensive software solutions portfolio makes them a good supplier of software programs for major firms. They have strong services group. (Wikinvest.com, 2015)