NDIVIDUAL GRADED PAPER

Plcy/Entp 419

ACQUISITION ANALYSIS

INDIVIDUAL GRADED PAPER (DUE APRIL 22 nd

)

1. Write a ten page (max) analysis of the company described in the “Confidential Memorandum” for IOtech posted on Blackboard).

2. Using the magic formula, calculate your valuation of the company. Apply current EBITDA multiples (the ones we learned in class) to the financial information contained in the Memorandum (same process as we used for APSCO).

3. Identify the other methods of valuation you could have used.

4. How would you finance the transaction. Show the various sources of funding plus the residual cash you would need to do the deal. Use current borrowing multiples.

5. What are the strengths of this company.

6. What are the weaknesses.

7. What deducts would be most potent in the negotiation.

8. Apply The FIVE FORCES Model to the company.

9. Why did you select the specific multiple used in your valuation.

10. What is the company’s enterprise value. What is it’s equity value.

11. In the calculation of EBITDA, why is depreciation added back. Why is interest added back.

12. While this is an individual assignment, you may work in your group to analyze the company. However, the paper itself must be your personal work product.

13. THIS PAPER WILL ACCOUNT FOR 25% OF YOUR FINAL COURSE GRADE.

LATE PAPERS RECEIVE AN AUTOMATIC ONE LETTER GRADE DEDUCTION.