What factors contributed to the success of Finansbank? a. Can you think of qualitative factors? b. Can you back up your answers to (a) with quantitative arguments? c. Can you supply additional quantitative arguments about Finansbank relative performance versus other banks in emerging markets and/or in the U.S.? [You may check the US Federal Reserve Economic Data or other sources you prefer] d. What do you think about its business model? What does it rest on? e. Does the business model justify Finansbank profitability? [Please substantiate your arguments with financial calculations as much as possible]
2. Finansbank ownership structure: a. Are there any particular concerns that you may have about Finansbank given its control structure? b. What would you do to try to check for evidence of such concerns?
3. Understanding the proposed transaction: a. Please make a graph or map out the structure and the terms of the proposed transaction between FIBA shareholders and National Bank of Greece b. Provide at least 5 qualitative reasons why Ozyegin should accept the offer. c. Provide at least 3 qualitative reasons why Ozyegin should not accept the offer.
4. Why would Ozyegin be interested in selling the Turkish operations and buying back the non-Turkish operations? a. Why would he sell only some parts of the bank and buy back other parts? b. What are the capital needs of the bank over the next three years? Can they be met by Ozyegin? c. What do you think would happen if he does not sell the bank and tries to run it on his own? [Please justify with as much quantitative evidence as you can]
5. How much is FIBA worth? a. What value would Multiples and Comparable Transaction suggest? b. Do the valuations by Bender, YF Securities and NBG seem sensible? Why or why not? Do they raise any concerns? [Please address each valuation separately]. c. Please make as many assumptions as you need to try to conduct your own DCF (or other type) of valuation of Finansbank. You will need to make assumptions since the case does not provide enough information d. So, if you were Ozyegin, would you take the NBG's offer? Summarize your reasons why or why not.
6. How would you feel about about the transaction as a minority shareholder? a. How much are the Non-Turkish operations worth? b. What would be your main concerns with this transaction? [Please provide as many quantitative arguments as possible for both questions]
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