Case Study

Valuing the target Company:

The company that has been identified as apotential candidate for acquisition is broad-based manufacturer and retailer of consumer products.Due to its existence and distinct product lines, the company is segmented into four operating groups:

-Clothing manufacturing

-General retailing

-Footwear manufacturing and retailing

-Furniture and home furnishings

Portions of the Company's financial statements for past year are presented below:

Business Sales Operating Profit Net Income Net operating cash flow US$ Mio US$ Mio US$ mio US$ mio Clothing 813.2 31.8 15.8 28.2 General retail 532.2 39.1 23.6 45.6 Footwear 890.4 92.2 72.1 80.3 Furniture 1105.6 149.1 128.7 179.8 3341.4 312.2 240.2 333.9Group Multiple range Value range mio] General retail 9.0 to 10 39.1 Footwear 8.0 to 9.0 92.2 furniture 9.0 to 10.0 149.1 Clothing( calculated _ earlier} Total