4_pinkerton h(1).xlsx - Case Sheet Pinkerton Summary of...

This preview shows page 1 - 2 out of 2 pages.

Case Sheet - Pinkerton Summary of Conclusions Date: 6-Dec Group: 5 Q1.a – Wackenhut’s Re x x Q2.a – sales (1994) x Q2.b – nopat(1994) x Q2.c – FCF(1994) x Q3.a – TV(1994) x Q3.b – Pinkerton’s value x Q3.c – All equity acquisition x Q4.a – PV(TS) for option 1 x Q4.b – PV(TS) for option 2 x Q5.a – NPVF for equity in option 1 x Q5.b - overall NPV of acquisition w/ option x Q5.c – overall NPV of acquisition w/ option x Q1.b – Wackenhut’s R 0
Tax rate 30% 30.00% R0 13.920% CF growth rate post 1994, g 5% x in sheet (est.) IS 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 Net sales 296.4 307.7 312.4 367.7 408.3 367.5 326.6 285.8 300.1 315.1 330.9 347.4 364.77403 3.8% 1.5% 17.7% 11.0% growth -10.0% -11.1% -12.5% 5.0% 5.0% 5.0% 5.0% 5% Gross profit 31.9 32.3 26.1 25.2 26.6 31.2 29.4 27.2 30.8 32.3 33.9 35.6 37.571725 10.8% 10.5% 8.4% 6.9% 6.5% % of sales 8.5% 9.0% 9.5% 10.3% 10.3% 10.3% 10.3% 10.3% Operating expenses 15.5 17.1 24.9 24.5 27.0 22.0 19.3 16.6 17.4 18.3 19.2 20.1 21.156894 5.2% 5.6% 8.0% 6.7% 6.6% % of sales 6.0% 5.9% 5.8% 5.8% 5.8% 5.8% 5.8% 5.80% EBIT 16.4 15.2 1.2 0.7 -0.4 9.2 10.1 10.6 13.4 14.0 14.7 15.5 16.4 Taxes 4.9 4.6 0.4 0.2 -0.1 2.8 3.0 3.2 4.0 4.2 4.4 4.6 4.9 NOPAT 11.5 10.6 0.8 0.5 -0.3 6.4 7.1 7.4 9.3 9.8 10.3 10.8 11.5 BS NWC 22.8 23.6 29.9 36.1 38.8 31.6 24.2 17.7 18.6 19.5 20.5 21.5 22.6 7.7% 7.7% 9.6% 9.8% 9.5% % of sales 8.6% 7.4% 6.2% 6.2% 6.2% 6.2% 6.2% 6.2% Net PPE 11.0 11.3 13.1 15.1 17.6 14.7 13.1 11.4 12.0 12.6 13.2 13.9 14.6 3.7% 3.7% 4.2% 4.1% 4.3% % of sales 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% NOPAT 6.4 7.1 7.4 9.3 9.8 10.3 10.8 11.5 -2.9012 -1.6332 -1.6332

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture