I need assistance with this Business Valuation case study. ( That's the best i could do with the image)
Thanks.
You have to zoom the image in order to cleary see it. I'm not able to do it here.
Questions:
1- preprare the Financial Review
2- The Valuation Methodologies
3- Valuate the business using the "Income Approach"
lAT&T 11:30 AM KRedmond_Pro_Printing.1x1_(ch.... Member Number- You have been ongaged by Jack and Diane Redmond to value their company, Redmond Pro Printing, Inc l"Redmond Pro The valution is for the purpose of giving 90 shares of Diane's stock to the Florida Conservancy for Cougars (FCC a 503A with headquarters in Tampa, Flrida The Valuation Date is October 31, 2012. You have been retained to prepare a "Detailled valuation report Redmond Pro Printing, Inc. is a closcly-held company with the following stock ownership Number ef Shares Percent Jack and Diane are husband and wife. They do not have any relatives working in the business The contribution to the FCC is to be 90 shares of stock The FCCs iterest on the board will be represented by an aoncy to be named later. Costs associaiod with the FCC represcnlative to atiend board moctings will be borme by FCC Jack and Diane have agreed so this Eamily charitable contribution The stock's te-sale to a non-family member will be restricted for a pariod of tive years If a family member does not re-purchase the shares, or agree to purchase the shares, within the stipulated five years and one day, then FCC may offer the shares for sale to non-family members Redmond Pro Printing, Inc. is a printing company headquantered in Tampa, FHlorida Mr. Redmond and a former business partnet, Justin Baker, startod the company in 1983 as Redmond Bakce Printing. The t me of the busness was changed to lLB Quiry Printing, Inc dorthy ahr ton k and Dane Redmond purchased Justin Baker's interest in the business in 1986 Al that time, the Redmonds changed the name to Redmond Pro Printing, In. The company leases real estae from Jak& Dase Family Limited Partnership (DFLP) which is ewsod by the company's principal sharcholders, Jack and Diane Redmond The kase agreement includes Redmond Pro's Tampa facilay and an additional peoperty known as the Chff Building. The lease payment is $23,450 per month This is the only relatedparty transaction in which the company is invelved. Redmend Pro sub-lcases approximatcly one-half of the space in the Cli Bailding to another company. Redmond Pro PrintingE Ins now has gross sales of approximately $12 million and employs about 110 poople. In 1986, when the name changed, Redmond Pho had annal sales of $100,000 and only five employees. The employee tunover rate is very low by industry standards, which implies a high depree ef employee satisfaction and a relative constant level of printing work There is an adequne supely of laber in the anea when occasional help is needed, and the compersation foe these individuals is average foe the Management below the ownar level is very good and capable. They are able to perform their dutics without much supervision or control. The owners (Jack and Diane) work 100% of the tme in the business. Jack Redmond (age 64) is the president of Redmond Pro and Diane Redond (age 60) is the office manager Each owner is paid $10,000 per month It is expected that an adoquase replacement for Diane can be found at an anual salary of 565,000-575,000. Jack's salary is at the market rale Soe the area The company's other key employees include: Enick Davidson (VP of Financel, Kurt Samaclson VP of Productionk, Dean Richardson (Manager of the Prepress Department), Sam Erickson (Manger of the Press Department), and Tamara Fonest(Maroger of the Finishing Department), Redmond Pro currently has 8 sales people, all of whom are located in Tampa In the future, Redmond Pho anticipates Rev, 9/14/ES Member Number CVA EXPERIENCE REQUIREMENT that salespeople-??? be added other pographic areas expansion cxistod as ol October 3, 2012 However, no definitive plans fr geographic Dashboard Calendar To Do Notifications Inbox lAT&T 11:30 AM KRedmond_Pro_Printing.1x1_(ch.... Member Number- You have been ongaged by Jack and Diane Redmond to value their company, Redmond Pro Printing, Inc l"Redmond Pro The valution is for the purpose of giving 90 shares of Diane's stock to the Florida Conservancy for Cougars (FCC a 503A with headquarters in Tampa, Flrida The Valuation Date is October 31, 2012. You have been retained to prepare a "Detailled valuation report Redmond Pro Printing, Inc. is a closcly-held company with the following stock ownership Number ef Shares Percent Jack and Diane are husband and wife. They do not have any relatives working in the business The contribution to the FCC is to be 90 shares of stock The FCCs iterest on the board will be represented by an aoncy to be named later. Costs associaiod with the FCC represcnlative to atiend board moctings will be borme by FCC Jack and Diane have agreed so this Eamily charitable contribution The stock's te-sale to a non-family member will be restricted for a pariod of tive years If a family member does not re-purchase the shares, or agree to purchase the shares, within the stipulated five years and one day, then FCC may offer the shares for sale to non-family members Redmond Pro Printing, Inc. is a printing company headquantered in Tampa, FHlorida Mr. Redmond and a former business partnet, Justin Baker, startod the company in 1983 as Redmond Bakce Printing. The t me of the busness was changed to lLB Quiry Printing, Inc dorthy ahr ton k and Dane Redmond purchased Justin Baker's interest in the business in 1986 Al that time, the Redmonds changed the name to Redmond Pro Printing, In. The company leases real estae from Jak& Dase Family Limited Partnership (DFLP) which is ewsod by the company's principal sharcholders, Jack and Diane Redmond The kase agreement includes Redmond Pro's Tampa facilay and an additional peoperty known as the Chff Building. The lease payment is $23,450 per month This is the only relatedparty transaction in which the company is invelved. Redmend Pro sub-lcases approximatcly one-half of the space in the Cli Bailding to another company. Redmond Pro PrintingE Ins now has gross sales of approximately $12 million and employs about 110 poople. In 1986, when the name changed, Redmond Pho had annal sales of $100,000 and only five employees. The employee tunover rate is very low by industry standards, which implies a high depree ef employee satisfaction and a relative constant level of printing work There is an adequne supely of laber in the anea when occasional help is needed, and the compersation foe these individuals is average foe the Management below the ownar level is very good and capable. They are able to perform their dutics without much supervision or control. The owners (Jack and Diane) work 100% of the tme in the business. Jack Redmond (age 64) is the president of Redmond Pro and Diane Redond (age 60) is the office manager Each owner is paid $10,000 per month It is expected that an adoquase replacement for Diane can be found at an anual salary of 565,000-575,000. Jack's salary is at the market rale Soe the area The company's other key employees include: Enick Davidson (VP of Financel, Kurt Samaclson VP of Productionk, Dean Richardson (Manager of the Prepress Department), Sam Erickson (Manger of the Press Department), and Tamara Fonest(Maroger of the Finishing Department), Redmond Pro currently has 8 sales people, all of whom are located in Tampa In the future, Redmond Pho anticipates Rev, 9/14/ES Member Number CVA EXPERIENCE REQUIREMENT that salespeople-??? be added other pographic areas expansion cxistod as ol October 3, 2012 However, no definitive plans fr geographic Dashboard Calendar To Do Notifications Inbox
