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Financial management – Specifically start-up valuations.

Honours or masters level (professional or academic).

The case is around a tech start-up in the informal transport market in South Africa, that has obtained some government funding and developed a working SaaS. However, requires funding to expand and grow. Informal transport is significant in emerging and developing markets and the product is portable internationally. In South Africa, two listed companies (US and SA) were started with similar concepts in Logistics and private client market and are now global in 124 and 24 countries. Management of the venture capital firm are senior and experienced and have invested years and funding into this company, and while willing to offer equity had quite a high value in mind, the venture capital company (with an impact mandate) needs to decide whether to fund the start-up and negotiate a value.

Characteristics of a successful start-up are formulating an appropriate discount rate, using real world data; performing a DCF and relative valuations given limited information; scenario analysis and sensitivity analysis; and the importance of negotiating (understanding managements side).

Teaching notes are available for educators only.

This case was written for use in financial management classes in either an academic full-time student (final year undergraduate/bachelor) or a postgraduate program with working students/professional (MBA) program level.

CSS: 1: Accounting and finance.

The proposed areas of study for this case are strategic management, marketing, tourism planning and development, hospitality management, attraction management and special event planning and management.

The case is suitable for undergraduate and graduate students pursuing courses in the areas of strategic management, marketing, tourism planning and development, hospitality and tourism management, attraction management and special event planning and management.

The Denbigh Showground located in the parish of Clarendon, Jamaica, is the venue of the annual Agricultural and Industrial Show. Three separate studies conducted indicated the need for its development to enable the use of the facility all year round and to contribute to the socio-economic development of the parish. Suggested development options from these studies included a fun and amusement park, a site for eco-tourism and a multi-purpose agri-cultural facility with linkages to the parish's cultural legacies and places of interest. The large land acreage could facilitate its development, making the property a leading “agri-cultural” attraction concept.

he students should be able to: identify the typology of the Denbigh Showground as an attraction; categorize the product offerings of the Denbigh Showground from a marketing perspective; explain the factors to consider regarding the development of the showground; analyze the socio-economic contributions of the facility to the parish of Clarendon and the community's attitude towards the development of the showground; discuss the potential uses of the Denbigh Showground that can make it a leading international “agri-cultural” attraction; synthesize the concept of sustainable tourism development and its importance to the development and viability of the attraction for future generations; and assess other tourism concepts such as community-based tourism, special interest tourism and alternative tourism and how they relate to the development of the Denbigh Showground.

This case study will help students understand the concept of an agri-cultural attraction and its impact on the socio-economic development of the surrounding communities and the country as a whole. The case will contribute to the existing body of knowledge in the areas of community development and residents’ perception regarding tourism development. It offers insights to both potential and current investors; provides practical guidance to the government and other tourism planners to enable better planning for the areas’ future growth and development; and serves as a reference for academicians as well as undergraduate and graduate students.

Teaching notes are available for educators only. Please contact your library to gain login details or e-mail: support@emeraldinsight.com to request teaching notes.

Teuer Furniture is a privately owned, moderately sized chain of upscale home furnishing showrooms in the United States. By the end of 2012, it had regained its financial footing and a number of long-term investors, including several of Teuer’s original non-management investors, now want to sell their shares. At the request of the board, Jennifer Jerabek, the chief financial officer of the company, and her team put together an extensive valuation of Teuer based on a discounted cash flow analysis. When the model was presented to investors, a number of them disagreed with the results. Some investors considered the value too high; others considered it too low. Not surprisingly, some of the differences of opinion were correlated with whether or not the investors wanted to sell their shares of Teuer. Jerabek was instructed to build a valuation of Teuer using a multiples approach instead.

After reading and analyzing the case, students will be able to:

• Estimate the value of a firm using a multiples approach

• Select an appropriate group of comparable firms and defend the logic behind the selection

• Select a correct set of valuation ratios and defend the logic behind the selection

• Compare the valuations produced by a multiples and DCF approach and if the valuations do not match, explain why the two methods yield different valuations

Estimate the value of a firm using a multiples approach

Select an appropriate group of comparable firms and defend the logic behind the selection

Select a correct set of valuation ratios and defend the logic behind the selection

Compare the valuations produced by a multiples and DCF approach and if the valuations do not match, explain why the two methods yield different valuations

Finance.

This case can be taught in the Finance area as a part of the course on “Valuation” in a postgraduate program. MBA/EMBA/MBF.

Himachal Futuristic Communications Ltd. (HFCL) discontinued all of its old products and entered into manufacturing of telecom products for mobile telephony and turnkey projects. This complete change in product line was like a re-birth for the company. HFCL grew tremendously between FY 2012 and FY 2015. Its sales grew from Rs 2,638m in FY 2012 to Rs 26,129m in FY 2015, an increase of 114 per cent CAGR (compound annual growth rate). HFCL stock price increased from Rs 11.75 in March 2012 to Rs 19.90 in September 2014 because of this tremendous growth. The stock price came down to Rs 13.35 in March 2015, as the market was sceptical about HFCL sustaining this growth. In March 2015, Choudhary, an equity analyst, was wondering how to value this high growth company. If somehow he could ascertain the intrinsic value of the stock properly, he would be able to appropriately advise his clients about the HFCL stock.

The case learning objectives are as follows: to scan the competitive landscape of telecom equipment manufacturing industry and gauge the competitive advantages enjoyed by HFCL; to size the potential market of the industry and predict the level of sustained profitability for HFCL; to develop multiple scenarios based on key drivers and compile projected financial statements for each scenario; and to value the company using the scenario-based discounted cash flow technique by assigning probabilistic weights to each scenario.

Teaching notes are available for educators only. Please contact your library to gain login details or email support@emeraldinsight.com to request teaching notes.

CSS 1: Accounting and finance.

The Employee Provident Fund Organization (EPFO), established by the Government of India is one of the World's Largest Social Security Organizations. The purpose of EPFO is to ensure social security for Industrial workers and their dependents. EPFO maintains more than 15 crore accounts of its members. Traditionally EPFO had been functioning as a legacy organization, administered and managed by Indian bureaucracy. Operational processes were riddled with over emphasis on rules and regulations, but were weak on transparency, accountability, effectiveness and efficiency. The 120 EPFO offices established all over the country operated in silos. Consequently, the very purpose of social security and welfare of the industrial employees suffered, while all other stake holders enjoyed significant controlling power. Recent interventions at EPFO were focused on process reengineering and ICT enablement to make EPFO more customer-centric. The case documents the transformation of EPFO from a bureaucratic, opaque organization to a customer centric, stakeholder friendly, transparent and accountable organization through IT enabled operations.

The case begins in mid-2014 and provides an opportunity for students at the undergraduate and graduate level to complete several strategic assessments of an entrepreneurial department within a post-secondary institution. The continuing education department of a university in Canada has been transferred to the dean of an academic faculty. The department has had a history of budget deficits and the new dean and executive director (ED) were tasked to develop and implement a turnaround strategy.

The case is written by the dean who had firsthand experience with the turnaround strategy. The written case was reviewed for accuracy by two principal actors: the ED responsible for implementing the plan, and the vice-president academic who is the dean’s supervisor and was kept apprised of all developments throughout the turnaround. Some of the data were produced by staff within the operation of Professional, Applied, and Continuing Education and acknowledged in the case.

This case is suitable for courses in business strategy, operations management, and includes various implications for human resource management, organizational behavior, and entrepreneurship suitable for undergraduate and graduate courses. It has a focus on turnaround strategies and strategy implementation.

Theoretical underpinnings for this case include strategic visioning and communication: portfolio management and innovation; internal environment analysis and positioning; structuring and resource management; and monitoring and control systems.