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

Download as .RIS

Publisher

:

University of Virginia Darden School Foundation

Copyright © 2007 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

Please note you might not have access to this content

You may be able to access this content by login via Shibboleth, Open Athens or with your Emerald account.
If you would like to contact us about accessing this content, click the button and fill out the form.