Hbr - Eskimo Pie Case Essay

We also know that Louis was contemplating a possible IPO exit strategy before the end of the holding period term. To estimate a multiple for this IPO exit, we need to look at the Price/Earnings ratio for Dollarama. Using the same methodology as above, we compared Dollarama to the same group of companies and computed the average P/E ratio for the set, see Exhibit 6a. We will consider the values for the year 2005 and will take a multiple of 24.6 for an eventual IPO exit.

What is your estimate of Ace’s cost of new common stock, ke? What are some potential weaknesses in the procedures used to obtain this estimate?

Chipotle has been an impressive company since its’ origin, particular stemming from popularity success in 2005; which leads me to believe the vision that influences Chipotle will almost always deliver success. For example, Chipotle experienced historical success during its’ seminal IPO appearance in 2006. Nation's Restaurant News reported that if you had invested $1,000 during Chipotle's initial stock appearance that investment would be presently be valued at over $33,000 (Maze, 2014, p.34). Furthermore, the article discussed that Chipotle IPO success was so historical that it was the first triple digit IPO in five years, which also ranked in being the first triple digit IPO in the restaurant industry (2014, p.34).

This document does not constitute buying advice or offer and should not be relied upon in connection with any contract, purchasing, or investment decision. The information contained in this document is privileged and confidential, intended for use during personal pre-ICO stage, for the eyes of friendly investors

o Revenues minus expenses determined the cash flows for years 1984-1991. The cash flows cease in 1991 after all oil and gas reserves are liquidated. The cash flows derived account for the liquidation of the oil and gas assets only, and do not account for liquidating other assets such as current assets or net properties. The cash flows were then discounted by net present value using Gulf 's cost of capital as the discount rate. Total cash flows until

The Eskimo curlew (Numenius borealis) is a medium sized shorebird with long legs and a long thin, bill that curves downwards. The curlew’s colors are usually mottled brown, on the upper parts, while the breast and abdomen are a buff color. Some would describe its color as more of a “cinnamon”. This pigeon-sized bird belongs to the Class: Aves, Order: Charadriliformes, Family: Scolopacidae, and Genus: Numenius. According to the Association of Zoos and Aquariums, the Eskimo curlew is related to other shore birds such as Snipes, sandpipers, and phalaropes.

Costs directly related to an IPO such as underwriting, legal fees, external and financial reporting advisor fees

Upon deciding to go public, a company looks into preparing an initial public offering (IPO). There are two IPOs with which a company can utilize: a traditional IPO or the relatively new Auction-based IPO that was made popular by Google. Avaya is currently planning for IPO. “Avaya is a global leader in business communications systems. The company provides unified communications, contact centers, data solutions and related services directly and through its channel partners to leading businesses and organizations around the world” (Avaya.com, 2011). Avaya’s current plan of an IPO valued at approximately $1 billion (Klassen, 2011) needs to consider whether to go with a

The recommended course of action in determining an optimal price, at which JetBlue should price their IPO, is a function of a variety of factors: price multiples of industry peers, prior IPO performances with respect to the airline industry, operating performance history, growth prospects, alongside long term profitability. Given the aforementioned factors, to consider an optimal pricing of JetBlue’s IPO, the greatest arsenal in a financier’s tool set in evaluating a corporation’s projected IPO pricing would be the using EEBITDA Multiple. This ratio is a computation that is derived from the basis of understanding and analyzing, in this case, Jet Blue from four primary facets: economic and industry trends, company background, financial statement analysis and market valuation (Kelly, 2009).

The second method we used to analyze the firm's value was the Comparable Companies Method. As shown in Table 1, we used the historical figures as of 1990 and Goldmans Sach's Projections. With an average of 22.8 times the value, Eskimo Pie has a value of $57 million at the fiscal year end of 1990. The Comparable Companies Method is more accurate then the Discounted Cash Flow Method because assumptions are not being used and the company's value is compared to industry values. The risk of using this method is that the value is subject to short-term fluctuations and assumes all companies can generate the same growth.

What would be the impact of these valuation models on the calculated offering price for its IPO shares?

Well, today yet-another (not entirely unexpected) revision came in. salesforce.com is now guiding for $5.34 to $5.37 billion in sales for the current fiscal year.

Krispy Kreme, a leading, well-established brand of high quality doughnuts, is still in a stage of astonishing growth potential. According to Dain Rauscher Wessels equity analyst David Geraty, “Krispy Kreme has established itself as the quality leader in the doughnut industry and is positioned to become the dominant industry player, with 145 retail locations in 27 states, Krispy Kreme is expected to capitalize on the brand conscious consumer’s demand for a consistent, high quality specialty food product” (Minneapolis 2000). Krispy Kreme has quickly risen to the top of the doughnut business in a short amount of time. The company’s goal since its infancy has been to satisfy customers by providing a unique experience

The process of going public provides a company with much needed growth capital.  Although there is incredible wealth transferred in initial public offerings, some companies feel cheated in the bargain.  Since 1980, the first day price increase after an initial offer has averaged 18.8%. (Ritter 2002)[1].  The

After this a series of valuation techniques such as discounting future free cash flows, valuing debt to equity directly and relative valuations compared to approximate competitors within the same industry will be applied. The goal of this is to derive the pre IPO offering value, and where applicable the post IPO value of China Dairy Corporation and assess the viability for investing. The post offering performance will also be reviewed and where applicable variations will be discussed to ascertain the reasons