INTRODUCTION ............................................................................................................. 7 2. LITERATURE REVIEW .................................................................................................. 8 2.1 Valuation Methodologies ................................................................................................................. 8 2.1.1. Cash-Flow Approaches ......................................................................................
.............................................................................................14 External Environment.........................................................................................................................23 E VALUATION OF S TRATEGIC F ACTORS ..................................................................................................27 Key Factors in Industry Analysis ..................................................................................
Michael Dell and Silver Lake. Share price offered to shareholders was $13.75/share resulting in post deal leverage of 3.7x for Dell as a private company. Fund break-up is mentioned in the below table. Proposal New debt $ 13.50 Case (foreign subs) $ 7.40 Microsoft $ 2.00 Silver lake $ 1.40 Michel dell $ 0.75 Total $ 25.05 net debt/EBITDA 3.7 x A valuation for Dell
environment Decreasing margins in the PC industry from fierce competition Maturing products Diluting high margin business (e.g. printing and imaging) Employee morale Organisational culture conflicts Server market competitors (e.g. IBM, Dell) eroding market share HP offers a comprehensive range of products and services, as a merged firm it can generate synergies by increasing its portfolio of hardware and software integrated products at a lower cost . In another words, the merger would
of comparable jewelry retailers is around 7.27x. We shall use this multiple of 7.27x for valuation purposes. At 7.27x, the enterprise value of Tiffany 's is $ 157.68 (21.9 * 7.27) million. Of this value, the value of debt is $ 49 million, giving us an equity value of $ 108 million. The multiple of EV to Operating income is commonly used in the retail industry for valuing. However, for the purpose of valuation by multiple, it is advisable to ignore Barry. Jewellers Inc. as these companies vary significantly
Dell Research The assignment being completed in this report has two major parts. The first major part relates to what a beta coefficient is and what the beta coefficients are for Dell and two other companies of the author's choosing. The second part of the assignment asks the author of this paper to identify and describe two events that required capital investment, one of them short-term and one of them long-term. All of the material involved in this paper is to be referenced. Beta Coefficients
factors prevailing in the market and the industry has significant headwinds going forward one year from now. This is particularly true of Dell who has seen an erosion of market share due to the influx and demand of tablet computers. Less demand for traditional laptops has also decreased the profit and operating margins of the firm. Even within its own market, Dell has encountered significant competition for rivals such as HP, IBM, and Microsoft who recently announced its own tablet (Scheck, 2008).
Company and Situation Dell was founded by Michael Dell in 1984, and made its name as a PC maker. In recent years Dell’s focus has shifted to the enterprise, and the company has made dozens of acquisitions to fill out its hardware, software and services offerings. While Dell has been profitable, the company’s move from a PC to an enterprise company has yet to translate into strong financial results, and investors have lost patience. By taking Dell private, Michael Dell hopes to move away from the
level of information in the supply chain management under e-commerce environment. Furthermore, in the meantime, set forward comparing terms of settlement. A contextual analysis on Dell Inc. was picked in light of the fact that Dell has survived the late economic slowdown since March 2000. This wonder was the consequence of Dell 's example of overcoming a real case of effective integration and usage of SCM and e-commerce. This paper initially stated about different activities that included in supply chain
essay I will attempt to answer what difficulties an accountant will face when trying to measure these intangible assets. The first major problems when dealing with intangible assets is the lack of standardized method of their identification and valuation which forces the accountant to make difficult choices and judgements. In his article Lev asks a very interesting question, should investments into innovation (R&D) be treated as an expense or an asset? Under the Generally Accepted Accounting Principles