Question
Due to a big hole in the State Budget due to Covid-19, the State of California decided it needs to lighten its financial load and
Due to a big hole in the State Budget due to Covid-19, the State of California decided it needs to lighten its financial load and raise some cash by selling off some of its assets. It is considering a secret plan to raise cash by selling ... CSUSM. Yep, sell the whole school, the whole shebang would be on sale as a package - the school, name & brand, students tuition, all the buildings, land, vehicles, parking fees, team sports, even that cougar mascot (whatever its name is) --- everything.
Part A: As a business major (hey, it's a paying job), the Governor has hired you to consider and report back on how much it could get for the sale in terms of its value, and the pros and cons of the financial factors affecting the possible price.NOT pros and cons of the sale, he's not asking for whether you think it is good or bad to sell schools or whatever, and if you tell him those things, it will just annoy your client (Governor) since he didn't hire you for that other stuff.Pros and cons of each of the FINANCIAL FACTORS and valuation techniques/tools possibly affecting the sale price.AND, also, what you recommend as the offer price and why based on such financial valuation considerations (Remember too, you are assisting the SELLER)...
Part B:One urgent and separate factor, Pepperdine Univ has come up with a bid to buy CSUSM.They are now offering the Governor a "take it or leave it" offer for $100 million to buy CSUSM.BUT they want to divide that 100 million into equal payments over 7 years (so a bit more than $14 million in principal each year).The Governor wants to know is that offer worth considering at all (good deal or is Pepperdine trying to lowball the Governor)?
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