Divestiture of Dupont Company

Profitability of oil companies declined due to low prices; and most of these firms responded with cost-cutting measures. Many top companies divested their marginal properties, seeking to consolidate and rationalize their productive assets- one of which was Amoco Corporation. Amoco Corporation conducted an extensive review of its cost structure and profitability (p.2), leading to major restructurings to better focus on its core businesses. The result of this was a divestment of the middle section of its assets along marginal curve. Morgan Stanley advised and assisted in the process, creating MW Petroleum Corporation – a new, free-standing exploration and production oil and gas company. MW was offered to a number of targeted international petroleum concerns, but the most attractive offer came from Apache Corporation. Apache Corporation was an independent oil and gas company based in Denver, Colorado engaged in exploration, development, and production of oil and natural gas. Their strategy, “rationalize and reconfigure” involves acquiring producing properties whose operations Apache could quickly control and make more efficient, producing significant cost-saving opportunities for the company. The sale of MW Petroleum provides such an opportunity for them. However, Apache must first carefully evaluate MW’s value to come up with a proposal that would be attractive for Amoco and profitable for Apache as well. CRITICAL ANALYSIS

Eleuthere Irenee DuPont, born in Paris,France was a French-American chemist and an industrialist. He was the first to start the family company once he move to America. One day when Eleuthere was hunting he noticed that the type of gunpowder that he was using wasnt that ineffective. Being the gunpowder ineffective it was also expensive. This gave him a great idea to start his own gunpowder company. In 1802, Eleuthere decided to open his gunpowder mill on Brandywine River in Delaware. Opening his company, made it the largest manufacture of gunpowder in the U.S in 1811. The war of 1812 rose Eleuthere profit to go up. Eleuthere also opened a wooden mill, cotton mill and a tannery

DuPont a well-known and once very well respected chemical company, is now known for their irresponsible business tactics and the way they dealt with the chemicals onsite, and the pollution it caused in our air and our drinking water. DuPont purchased a large piece of land about sixty acres in New York, West Virginia, known as a small town and consisted of a lot of farming and irrigation, cattle, and production of crops. The DuPont case started when a local farmer in the community exploited the footage of the stream nearby being polluted with chemicals from the DuPont plant. The local towns people, were fed up with the situation in their town and the injurious ways it was affecting their cattle, so they set up a meeting with a corporate defense

It is important for stockholders to continuously re-evaluate their investments. Although some investors do this more frequently and thoroughly than others, the majority of shareholders do so at least once each year. Therefore, Torres’ desire to update her analysis in order to determine whether Costco was still operating efficiently makes perfect sense. After thorough examination, my analysis proves that Costco remains one of the industry’s leading competitors and there seems to be no reason for Torres to sell her shares as long as she wishes to retain holdings of a

How attractive to PepsiCo is the proposal to buy 30% of Deltex for 1.1B pesos (US$360M)?

By divesting IPD, Nova could focus on its specialty chemicals business, which would experience heavy investments and rapid growth in the coming years. While specialty chemicals may need to now source raw material from the market instead of IPD it maybe for the better since IPD was operating at a cost disadvantage. Our calculations also show that the rest of Nova, namely LPD and EPD, could do much better without IPD. The combination of LPD and EPD could be worth $920 million, according to projected cash flows derived from the pro forma income statement. If this value were realized, the value/sales ratio would be 2.5, which is much higher than the industry average of 0.7. The combination of LPD and EPD could be a star in the market!

Through out his tenure at Sunbeam,Al Dunlap’s advocated profit by firing many employees and shutting down many factories.If we look at it in the short term ,this approach seems very attractive as it brings in quick short term

Grand Metropolitan PLC is the world’s largest wine and spirits seller. It mainly operated in London, USA. In 1991, it beats market expectation with a 4.8% increase in pretax profits, and the company Chairman stated that company’s goal “to constantly improve on”. Despite the great performance in the world recession in 1991, the price of GrandMet shares was 10% below the average price/earnings ratio of the companies in the Standard & Poor’s 500 index. And more important, rumors had that GrandMet, valued at more than $14 billion in the stock market, maybe a takeover target. The management dilemma is to understand why the company’s stock is traded below of what considered being the right price and whether the company is truly

Over 30 divestitures in under 20 years in efforts to only keep business that would continue to add value

Recapitalization seems to be the best alternative discussed in the case, mainly because of the underlying 39% IRR (discussed below). There are chances to expand the pie (through consolidation and/or operational improvement) and sell it at a higher price, taking the advantage of the potential market pick-up in 2003. Two potential risks are that the higher price is not guaranteed and that there is low interest from financial buyers and no powerful strategic buyer, future selling negotiations may take time again.

Pepsi –cola was started in the summer of 1898 in New Bern, North Carolina by Pharmacist Caleb Bradnham. PepsiCo Inc. started in 1965 with the merger of Pepsi-Cola and Frito-Lay. Since then, PepsiCo has continued to grow, adding new brands and product lines meeting the demands of the market. Throughout the years, they have strived and worked toward environmental sustainability. The ability to be financial stable gives PepsiCo the ability to give back and donate to those communities they are located in. PepsiCo’s mission to provide performance with purpose means delivering sustainable growth by investing in a healthier future for people and our planet. PepsiCo is continually increasing their triple bottom line.

The main questions facing Fojtasek and the Brazos partners is whether they should do another deal with Cheddars and if so what price should they sell their ownership shares back at and what concessions they should make. I believe that Brazos should do the deal with Cheddar’s. The company has proven itself to be a winner and is projected to grow even more over the next few years. With restaurants being built at twice the anticipated pace and the success of its spinoff chain Fish Daddy’s, Cheddar’s is projected to out preform all five of its top competitors. Not only is there continued success on the horizon, at the core of Brazos business strategy is relationships and Cheddar’s has proven to be a solid business relationship. Since Cheddar’s is clearly in a growth stage that relationship must continued to be valued in order to achieve the maximum profitability. With regards to the stock price, Cheddar’s stocks were valued at $1 dollar per share with a $60.5 million investment, which is Cheddar’s stock value according to Bravos initial investment. Using Cheddar’s 2004 revenue adjusted for EBITDA and the multiplier (7.1) I came up with a new value of $88.75 million then divided that by the initial investment. My calculations gives the company a per share value of $1.47. I would hold Cheddar’s to that price. There was also the issue of the new real estate policy brought forth by the Cheddar’s board. While the concern that the trajectory of that plan

But Dupont analysis indicates that profitability and efficiency have become lower. Additionally, the working capital has become lower and the current and quick ratios have declined. To understand the impact of these declining ratios on this company, the industry trend has to be analyzed to see if this happening throughout

The case study is Macy’s Department Store Repositioning. The key problem is that the traditional department stores sales and profits are declining. There are specialty stores, discount stores, and online stores that offer similar products at a fraction of the cost for the most part. However, in the declining market for the department store industry, Macy’s consolidated stores, established a national department store and continues to make a steady profit. It is usually the time to divest, sale,

With the current economic trends, and the diverse financial status of many businesses and individuals, the reorganization, downsizing and at times disposal of companies is a common trend. In order for you to get the value for your business, Pat Marsh offers a flexible service and an end-to-end service that will save you the costs of having to go across several organizations for valuation, liquidation process and auctioning.