Essay on John M Case

Words: 3678
Pages: 15
Open Document
JOHN M. CASE COMPANY
Mergers and Acquisitions

OCTOBER 6, 2015
FINA 5513D - MERGERS AND ACQUISITIONS
Syed Ali Ahmad (100978220), Long Thanh Dinh (100986227) Zeeshan Halim (100986227)

Table of Contents
Executive Summary .................................................................................................................. 2
Why the J.M.C. Company is an Attractive Target for the Firm’s Management ............... 3
Why purchase the J. M. C. Company by LBO ...................................................................... 4
Target Selection ...................................................................................................................... 4
Industry …show more content…
As the firm's debt capacity is found to be at $16.6 M the management team will have to use $3M cash from the firm in addition to borrowing $6.5M from Venture Capitalist where they would be granted an unspecified number of warrants giving them right to J. M. C. Company shares in the future.
Given the financing plan, the Venture Capitalists will acquire 15% of the company, while the managers are left with a strong 85% ownership granting them autonomy over the operations.

2|Page
John M. Case Company

Why the J.M.C. is an Attractive Target for the Firm’s Management
The following gives an outline of the firm's internal strengths and weaknesses and external opportunities and threats. Examination of the data reveals that the company is strong, with the strengths far outweighing the weaknesses, with some sound opportunities for growth with little threat from outside competitors.
Criteria
Strengths






















Weaknesses












Opportunities




Threats







60 to 65% market share
Operations profitable since 1932
Increasing sales since 1955
Average return on capital of 20%
Sales increase 7% (compound rate) over the past five years
Cost reductions yielding increase earnings
Simply technology
Lower variable costs
Predictable customer orders
Low overall tax rate (Puerto Rican tax benefits)
Modern equipment, well
Show More

Related Documents: Essay on John M Case

John M. Case Analysis Essay

Overview History/Growth This case concerns the John M. Case Company, which at one time was the leading producer of business calendars in the United States. The company was founded by the grandfather of John M. Case in 1920 and was inherited in 1951. The company had experienced profitable operations every year since 1932, and held approximately a 60-65% market share by 1984. Sales had been increasing annually at about a 7% compound rate, and the return on average invested capital was about…

Words 1275 - Pages 6

Mary M Murder Case

Mary M. is set to appear in court on April 16 1957 for the suspected murder of her husband Mr. M. nevertheless experts are speculative of weather Mary M was the murderess, or simply a loving wife. Detective James M. was a respected member of the police force. He had won several awards for exceptional conduct and was expected to soon move up in the ranks. Moreover Mary M. the wife of James M, was expecting a baby in just a few months. Consequently this leads many to doubt her guilt. Police officer…

Words 557 - Pages 3

' The Necklace, And Their Negative Impact On The Protagonist

Secondary Characters John (“The Yellow Wallpaper”) and M. Loisel (“The Necklace”) and Their Negative Impact on the Protagonists Secondary characters can negatively affect the protagonist and may be the reason for their downfall. Specifically, their behavior and established roles in their relationship may cause the destruction of the main character over the course of the story. “The Yellow Wallpaper”, by Charlotte Gilman, is the story of a woman who is told by her husband, John, to stay in the room…

Words 2209 - Pages 9

Mortgage APR EAR Handout Essay

annuities involving monthly payments. The effective monthly interest rate (EMR or reff. monthly) must be calculated first in order to determine the amount payable each month. Canadian mortgages: (Note: a similar approach must be followed in other cases when payment frequency is different from the number of compounding periods.) Canadian disclosure regulations are a bit peculiar. See page 143-144 in the textbook (132-133 in the 1st edition) for a discussion on how Canadian mortgage rates are quoted…

Words 1296 - Pages 6

Essay on Days of the Year and John Jay

John Jay College of Criminal Justice, CUNY 445 W. 59th St., New York NY 10019 SYLLABUS: The Discovery of the Scientific Method. Professor: Dr. David Munns Professor’s office: New Building, 8th floor: 8.65.10 Semester: Fall 2013 Course Code: HIS: 131 Course Section: 01 Classroom: TBA Class time: 2nd 9:25am-10:40am Office Hours: Mon and Wed 11-12noon Professor’s phone and e-mail: (646) 557-4496: dmunns@jjay.cuny.edu Course Description: From the Enlightenment until the present day…

Words 2240 - Pages 9

RAP Fayzul 1 Essay

the topic ........................................................................................ 3 1.1.3 Reasons for choosing Marks & Spencer ........................................................................... 3 1.1.4 Marks & Spencer and John Lewis Partnership ................................................................. 4 2. 3. 1.2 Aims and report objectives .............................................................................................. 4 1.3 Overall research approach…

Words 7939 - Pages 32

Analysis Of The Breakfast Club

The Breakfast Club ‘The Breakfast Club’ is a very successful 1985 film directed by John Hughes. The film is popular for the classic portrayal of the characters from a psychological perspective. The movie is an earnest attempt at exploring and bringing to light the unconventional themes of suicide, depression, materialism, aggression, social alienation, aggression, narcissism, physical and emotional abuse, through the realistic depiction of the behaviors, personalities, attitudes and issues of the…

Words 427 - Pages 2

M. Therese Lysaught's Argument

M. Therese Lysaught explores an ethically complicated medical case in a Catholic hospital in Phoenix, Arizona, St. Joseph's Hospital and Medical Center. The thesis of this paper is that, in light of the details of this case provided below, M. Therese Lysaught judged that the actions of the hospital in this situation did not classify as a direct abortion. M. Therese Lysaught defends argument through in five ways. First, she cites the magisterial teaching embodied by Catholic Healthcare West, and supports…

Words 1134 - Pages 5

Deviant Behavior Paper

behavior might be considered deviant is through cultural beliefs. I read up on a case study about homosexual behavior is morally wrong. The main reason why the lifestyle is deviant is because it goes against the “social normality” of things. The case study briefly states that homosexuality and some other bad behaviors due to biblical beliefs are wrong in the eyes of God and all have the same type of punishment (Professor Burton M. Leiser. See Liberty, Justice, and Morals (2nd edition) (Macmillan, 1979))…

Words 687 - Pages 3

Real Estate Decision Making

SCHOOL OF URBAN & REGIONAL PLANNING SURP 841: Real Estate Decision Making Fall 2011 COURSE OUTLINE Instructor: Office: E-mail: Telephone: John S. Andrew, Ph.D., M CIP, RPP Robert Sutherland Hall, Room 525 john.andrew@queensu.ca 613-533-6000 ext. 75756 Session Time: Mondays, 11:30 am - 2:20 pm Session Room: Robert Sutherland Hall, Room 554 Overview of the Course The course is an introduction to the concepts, principles and analytical methods involved in making the broad variety…

Words 2314 - Pages 10