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Case Questions Eskimo Pie Describe the key attributes of Eskimo Pie business. Why does Nestle have an interest? Are there potential synergies? Is Eskimo Pie
Case Questions
Eskimo Pie
- Describe the key attributes of Eskimo Pie business. Why does Nestle have an interest? Are there potential synergies? Is Eskimo Pie worth more to Nestle or as a standalone company?
- What is your estimate of the value of Eskimo Pie as a standalone company? What is the range of potential values using a simplified DCF and comparable valuation methods?
on question #2 the simplified DCF valuation method uses the following formula:
FCF (terminal year) X (1+g) / r-g
g= growth rate
r= WACC
FCF= free cash flow
- As an advisor to Reynolds, would you recommend the sale to Nestle or the proposed IPO?
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