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Lubri-Tech Technologies is a small public company located in Brownsburg Indiana that specializes in friction reducing oil additives that increase the wear-resistance of metals. This
Lubri-Tech Technologies is a small public company located in Brownsburg Indiana that specializes in friction reducing oil additives that increase the wear-resistance of metals. This technology has been shown to greatly extend the life of internal combustion motors used in marine and other recreational applications. Given the recent success of companies in this arena (such as Lucas Oil Products), it is anticipated that friction-reducing oil additives will be increasingly utilized in the automotive and related industries in the future. As a member of the M&A analysis team for Lucas Oil Products, you have been assigned the task to (a) estimate the value of Lubri-Tech Technologies using the FCF valuation approach (using historical figures as the appropriate FCF valuation input parameters to start with), and (b) determine if there is any logical reason to pursue Lubri-Tech Technologies further as an acquisition target at this time
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