In The Bedford Clinics Case study

Question 5

a. Are taxes relatively important in determining the value of Sooner Clinics?

b. Suppose the Year 6+ revenue growth rate could be as low as 1 percent and as high as 3 percent.Is the 6+ revenue growth rate relatively important in determining the value of Sooner Clinics?

Question 6

Should all partners receive the same per share amount if the practice is sold? Explain.

Question 7

a. From the perspective of the target, how would the analysis change if the acquirer planned to finance half of the acquisition price with debt? No calculations are required.

b. From the perspective of the acquirer, how would the analysis change if the acquirer planned to finance half of the acquisition price with debt? No calculations are required.

c. Is the current percentage of debt in the capital structure of Bedford Clinics relatively high or low? Does this make it a more or less attractive acquisition target? Explain your answer.