![]() The enterprise value calculated on estimated figures of 2005 shows far more better results, considering a sale multiple represents an enterprise value of $109,564 and $96,625 whereas the EBITDA multiple shows the figure of $147,856 and $143,536 Trading Multiples: Based on our analysis in Appendix 1, the enterprise value based on sales multiple in 2004 represents a figure of $78, 839 and $69,529 whereas considering the EBITDA multiple in 2004 shows a result of $102, 880 and $99,874. In order to account these factors, owners shall consider the ownership and control of the organization and shall adopt a strategy which will benefit the organization while fulfilling their own needs. Further, the organizations usually want to control business so that they can align different business operations in order to enjoy synergies. On the other hand, privately owned companies usually face the problem of liquidity discount, where the equity value of the organization is decreased as compared to other publicly traded companies operated under same capacity. A controlling premium is the higher amount paid by the acquirer in order to obtain the control of the organization, where the acquirer exercises an important part in the decision-making process. There are also other factors which may affect the value of Spyder. Other factors impacting the value of Spyder In order to maximize the value of the company, the organization shall consider to locate a financial buyer which will be interested to hold a minority interest in the company because financial buyer will provide funds to the organization in exchange for the expected return but will not exercise a level of control which will benefit the existing management in performing their duties without experiencing any sort of organizational change. Further, in a minority interest, the parties do not possess the power to influence the operations of the business whereas the controlling parties hold the power to influence the situations. ![]() ![]() Strategic buyers enjoy synergistic benefits from aligning the operations of different business whereas the financial buyers are typically companies which invest money in growing business and are really concerned about their returns. The parties were concerned about the feasibility of the options which could increase their worth and were also concerned about the succession and future leadership which would increase the worth of the whole organization. In early 2004, as long as the market improved after serving a downturn in economic conditions, CHB wanted to liquidate its investment and Jacob wanted to harvest some value from his company, so they decided to sale Spyder. Jacobs and Shimokubo hold a share of 25.4% each, whereas the remaining share of 11.3% belongs to the company’s employees, including Jake Jacobs. ![]() The ownership structure of Spyder comprises of 37.9% share that belongs to CHB. ![]() Ownership structure and an evaluation of sale perspective By 2004, the founder of the company, David Jacobs and CHB was considering the sale of company, which raised issues of the company’s valuation and foreseeable future prospects of Spyder Active Sports. The report presents a case about Spyder Active Sports, a leading supplier of skiwear clothes and accessories, which had enjoyed tremendous growth through a long-standing partnership with CHB Capital Partners, a private equity firm. ![]()
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