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Alliance Concrete: Just One More Thing

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

After having negotiated major financial and operating decisions with its parent company, the CFO of this small ready-mix concrete subsidiary is asked to provide a valuation of the subsidiary. A one-year forecast of financial statements is provided along with information on long-term operating expectations and capital costs. This otherwise straightforward valuation exercise is enhanced by (1) the need to select between the parent- or comparable-firm costs of capital, (2) sufficient guidance to perform an illuminating sensitivity analysis, and (3) a sufficiently clear and rich context in which to illustrate the linkages between operating and financing choices. A teaching note and instructor and student Excel spreadsheets are available.

Keywords

Citation

Lipson, M.L. (2017), "Alliance Concrete: Just One More Thing", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000018

Publisher

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University of Virginia Darden School Foundation

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