austin case

austin case - Austin Gladstone Inc MAKE SURE THEY...

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Unformatted text preview: Austin Gladstone Inc. MAKE SURE THEY UNDERSTAND THEY ARE TO DO ONLY THE VALUATION PART FOR THE FIRSTCASE! In January 1997, Mr. David Wells, the CFO of Austin Gladstone (AG) was pacing in his office on this Friday morning. On his desk were various financial reports of the company, the result of a comprehensive examination of the financial condition of the company he had ordered. He had undertaken to reexamine the financial situation of the company after an unsettling board meeting a couple of weeks before. During this meeting board members discussed rumors of an impending offer from a large energy company. If such rumors were true, was AG prepared to evaluate a serious offer, friendly or hostile? Further, some of the discussion at the meeting had to do with how well AG was prepared to deal with significant changes in exchange rates. The situation in Europe was unsettled, mainly over the position of the UK vis a vis the new Euro. In the Far East, Julie Radner, his chief economist, had been writing warning memos over the lack of progress in Japan’s economic recovery and the steadily depreciating Yen. The Australian economy was doing fine but a recession in East Asia was likely to hurt the Australian dollar. Right after the meeting he had asked the accounting team to produce a set of comprehensive financials. He also asked his chief economist to come up with 5-year...
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austin case - Austin Gladstone Inc MAKE SURE THEY...

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