please do it in 30 minutes please urgently... I'll give you up thumb definitely

Ozarks Pharmaceutical Ltd. (OPL or the Company) is a global pharmaceutical business whose strategy is to both develop new drugs and acquire pharmaceutical businesses who have developed, or are developing, new products. In 2016, OPL was acquired by one of the largest Mexican private equity firms led by Mr. Marty Byrde ("the PE firm) through a leveraged buy-out (by adding debt to the business). In 2018, the PE firm took OPL public by selling 40% of its common shares in the public markets. OPL has made subsequent issuances of common shares in both 2019 and 2020. The PE firm maintains a strong influence on the Board of Directors of OPL. In early 2019, the PE firm guided OPL's strategy to acquire a large US-based pharmaceutical business Natural Opioids Inc. (NOI) that had demonstrated significant growth and profitability by being one of the first and most aggressive manufacturers and distributors of Opioids in Northeastern USA. In early 2020, because of the Opioids-crisis and the various litigation commenced by governments, OPL was forced by its auditors to write-down the goodwill recognized on the purchase of NOI. OPL continues to sell all of NOI's products and product lines, however, it has significantly altered their marketing and selling strategies, pursuant to an investigation. Throughout 2019 and 2020, OPL also continued to engage in the purchase and sale of various products/patents to buyers, some resulting in a gain or loss. Attached are the financial statements for the most recent three years (2020, 2019 and 2018), including information pertaining to EPS and Stock Price for fiscal year-end. From 2018 to 2020, the OPL's stock price decreased from $33/share to $12.50/share. Your Role: Mr. Byrde and the PE firm are looking to unload their common shares in OPL to a "business acquaintance of his by the name of Mr. Javier Javi Elizondro who owns Laundering Capital LLP (LCL), a Toronto-based family office with significant funds to invest, for a price of approximately $18 per share. LCL has hired you, a Toronto-based financial statement analysis and valuation-guru, to analyze the financial statements of OPL and provide LCL with information and advice regarding the potential acquisition of OPL. Required (3 parts): a. Provide LCL with a memorandum outlining your financial statement analysis of OPL's overall financial performance and financial health from 2018 to 2020. Select and calculate the financial analysis tools and ratios that you deem to be most relevant and that would allow you to effectively "tell the story" of OPL's "true" performance and financial health. In providing your responses, indicate any significant risks you identify with LCL's acquisition of OPL. Support your response. b. LCL informs you that in their organization they are always looking to maximize the return on their invested capital and one of the ways they do this is by maximizing the leverage (debt) that they can load their investments with (i.e., if they can pay interest on debt at 5% and earn a 10% return on the investment of that capital then LCL earns the incremental return). As a result, LCL has engaged with Mr. Felix Miguel Gallardo of Narcos Credit Bank (NCB) to provide any incremental debt to OPL. LCL has asked you to prepare a financial analysis of OPL from the perspective of a creditor" looking to add incremental debt to the OPL business. Please prepare the analysis in a memorandum format so that LCL can simply forward it to NCB as their form of due diligence on extending additional credit to OPL. LCL also notes that Mr. Gallardo can get highly agitated quickly and has a short attention span so get to the point and be clear with your recommendations. c. Finally, LCL would like you to provide them with your analysis and recommendation as to whether they should opt to acquire the PE firm's interest in OPL for $18 per share as is currently being offered. Analyze and use Price-to-Earnings Ratio and Adjusted EPS in forming your analysis and conclusion. Support your response and provide your rationale. Ozarks Pharma Ltd. Balance Sheet As at December 31, 2020, 2019 and 2018 (in $ millions) 2019 2018 2020 $ $ Assets Current Assets Cash Marketable Securities Accounts receivable Inventories Prepaid expenses $ 5,923 1,570 $ 2,450 1,356 486 11,785 2,765 13,350 27,900 250 $ 2,250 1,235 865 4,600 2,287 20,315 27,202 1,275 2,000 534 224 333 4,366 555 8,500 13,421 Property, plant and equipment Goodwill and intangible assets Total Assets $ Liabilities Current Liabilities Short Term Debt Accounts payable Accrued liabilities Current portion of long-term debt 1,100 2,305 550 3,955 7,545 125 11,625 1,632 435 2,350 660 5,077 10,050 750 15,877 235 650 150 1,035 6,129 Long-term debt Unearned revenue Total Liabilities 7,164 Shareholders' Equity Common shares Retained earnings 17,250 (975) 16,275 27,900 11,635 (1,150) 10,485 27,202 8,567 (2,310) 6,257 13,421 Total Liabilities and Shareholders' Equity Ozarks Pharma Ltd. Statement of Operations As at December 31, 2020, 2019 and 2018 in $ millions) 2019 2018 2020 $ Revenues Cost of sales 7,950 $ 2,750 5,200 10,250 $ 4,350 5,900 4,560 1,250 3,310 Gross Profit 2,050 1,050 550 866 Selling, general and administrative expenses Research and development expenses Goodwill impairments Amortization expense Operating Income (loss) 1,735 413 6,965 608 (4,521) 450 235 1,659 2,350 Non-recurring loss/(gain) Interest expense Net Income (loss) Before Income Taxes 555 850 (5,926) (335) 1,050 1,635 333 1,326 Income tax expense (155) 475 126 Net Income (loss) (5,771) 1,160 1,200 Basic Earnings Per Share (9.62) 2.58 4.80 Weighted Average Number of Common Shares (in millions) 600 450 250 Stock Price (end of fiscal year) S 12.50 $ 18.00 $33.00 Ozarks Pharma Ltd. Statement of Cash Flows As at December 31, 2020, 2019 and 2018 (in $ millions) 2020 2019 (5,771) 1,160 Cash Flows From Operating Activities Net earnings Adjustments to reconcile net income to operating cash flows: Non-recurring loss/(gain) Depreciation and amortization of intangible assets Goodwill inpairment Operating assets and liabilities Net cash provided (used) by operating activities (335) 450 555 608 6,965 53 2,410 331 1,606 (1,086) Cash Flows From Investing Activities Capital expenditures Purchase of OPO Business Proceeds from the sale of business units Net cash provided (used) in Investing Activities 1,732 (12,500) 3,230 2,144 (10,768) Cash Flows From Financing Activities Issuance (repayment) of debt, net of repayments Issuance of common shares Net cash provided (used) in Investing Activities (2,615) 5,615 3,000 3,921 3,068 6,989 Net increase (decrease) in cash Cash- beginning of period Cash - end of period 7,554 (1,632) 5,923 (2,174) 542 (1,632) Ozarks Pharmaceutical Ltd. (OPL or the Company) is a global pharmaceutical business whose strategy is to both develop new drugs and acquire pharmaceutical businesses who have developed, or are developing, new products. In 2016, OPL was acquired by one of the largest Mexican private equity firms led by Mr. Marty Byrde ("the PE firm) through a leveraged buy-out (by adding debt to the business). In 2018, the PE firm took OPL public by selling 40% of its common shares in the public markets. OPL has made subsequent issuances of common shares in both 2019 and 2020. The PE firm maintains a strong influence on the Board of Directors of OPL. In early 2019, the PE firm guided OPL's strategy to acquire a large US-based pharmaceutical business Natural Opioids Inc. (NOI) that had demonstrated significant growth and profitability by being one of the first and most aggressive manufacturers and distributors of Opioids in Northeastern USA. In early 2020, because of the Opioids-crisis and the various litigation commenced by governments, OPL was forced by its auditors to write-down the goodwill recognized on the purchase of NOI. OPL continues to sell all of NOI's products and product lines, however, it has significantly altered their marketing and selling strategies, pursuant to an investigation. Throughout 2019 and 2020, OPL also continued to engage in the purchase and sale of various products/patents to buyers, some resulting in a gain or loss. Attached are the financial statements for the most recent three years (2020, 2019 and 2018), including information pertaining to EPS and Stock Price for fiscal year-end. From 2018 to 2020, the OPL's stock price decreased from $33/share to $12.50/share. Your Role: Mr. Byrde and the PE firm are looking to unload their common shares in OPL to a "business acquaintance of his by the name of Mr. Javier Javi Elizondro who owns Laundering Capital LLP (LCL), a Toronto-based family office with significant funds to invest, for a price of approximately $18 per share. LCL has hired you, a Toronto-based financial statement analysis and valuation-guru, to analyze the financial statements of OPL and provide LCL with information and advice regarding the potential acquisition of OPL. Required (3 parts): a. Provide LCL with a memorandum outlining your financial statement analysis of OPL's overall financial performance and financial health from 2018 to 2020. Select and calculate the financial analysis tools and ratios that you deem to be most relevant and that would allow you to effectively "tell the story" of OPL's "true" performance and financial health. In providing your responses, indicate any significant risks you identify with LCL's acquisition of OPL. Support your response. b. LCL informs you that in their organization they are always looking to maximize the return on their invested capital and one of the ways they do this is by maximizing the leverage (debt) that they can load their investments with (i.e., if they can pay interest on debt at 5% and earn a 10% return on the investment of that capital then LCL earns the incremental return). As a result, LCL has engaged with Mr. Felix Miguel Gallardo of Narcos Credit Bank (NCB) to provide any incremental debt to OPL. LCL has asked you to prepare a financial analysis of OPL from the perspective of a creditor" looking to add incremental debt to the OPL business. Please prepare the analysis in a memorandum format so that LCL can simply forward it to NCB as their form of due diligence on extending additional credit to OPL. LCL also notes that Mr. Gallardo can get highly agitated quickly and has a short attention span so get to the point and be clear with your recommendations. c. Finally, LCL would like you to provide them with your analysis and recommendation as to whether they should opt to acquire the PE firm's interest in OPL for $18 per share as is currently being offered. Analyze and use Price-to-Earnings Ratio and Adjusted EPS in forming your analysis and conclusion. Support your response and provide your rationale. Ozarks Pharma Ltd. Balance Sheet As at December 31, 2020, 2019 and 2018 (in $ millions) 2019 2018 2020 $ $ Assets Current Assets Cash Marketable Securities Accounts receivable Inventories Prepaid expenses $ 5,923 1,570 $ 2,450 1,356 486 11,785 2,765 13,350 27,900 250 $ 2,250 1,235 865 4,600 2,287 20,315 27,202 1,275 2,000 534 224 333 4,366 555 8,500 13,421 Property, plant and equipment Goodwill and intangible assets Total Assets $ Liabilities Current Liabilities Short Term Debt Accounts payable Accrued liabilities Current portion of long-term debt 1,100 2,305 550 3,955 7,545 125 11,625 1,632 435 2,350 660 5,077 10,050 750 15,877 235 650 150 1,035 6,129 Long-term debt Unearned revenue Total Liabilities 7,164 Shareholders' Equity Common shares Retained earnings 17,250 (975) 16,275 27,900 11,635 (1,150) 10,485 27,202 8,567 (2,310) 6,257 13,421 Total Liabilities and Shareholders' Equity Ozarks Pharma Ltd. Statement of Operations As at December 31, 2020, 2019 and 2018 in $ millions) 2019 2018 2020 $ Revenues Cost of sales 7,950 $ 2,750 5,200 10,250 $ 4,350 5,900 4,560 1,250 3,310 Gross Profit 2,050 1,050 550 866 Selling, general and administrative expenses Research and development expenses Goodwill impairments Amortization expense Operating Income (loss) 1,735 413 6,965 608 (4,521) 450 235 1,659 2,350 Non-recurring loss/(gain) Interest expense Net Income (loss) Before Income Taxes 555 850 (5,926) (335) 1,050 1,635 333 1,326 Income tax expense (155) 475 126 Net Income (loss) (5,771) 1,160 1,200 Basic Earnings Per Share (9.62) 2.58 4.80 Weighted Average Number of Common Shares (in millions) 600 450 250 Stock Price (end of fiscal year) S 12.50 $ 18.00 $33.00 Ozarks Pharma Ltd. Statement of Cash Flows As at December 31, 2020, 2019 and 2018 (in $ millions) 2020 2019 (5,771) 1,160 Cash Flows From Operating Activities Net earnings Adjustments to reconcile net income to operating cash flows: Non-recurring loss/(gain) Depreciation and amortization of intangible assets Goodwill inpairment Operating assets and liabilities Net cash provided (used) by operating activities (335) 450 555 608 6,965 53 2,410 331 1,606 (1,086) Cash Flows From Investing Activities Capital expenditures Purchase of OPO Business Proceeds from the sale of business units Net cash provided (used) in Investing Activities 1,732 (12,500) 3,230 2,144 (10,768) Cash Flows From Financing Activities Issuance (repayment) of debt, net of repayments Issuance of common shares Net cash provided (used) in Investing Activities (2,615) 5,615 3,000 3,921 3,068 6,989 Net increase (decrease) in cash Cash- beginning of period Cash - end of period 7,554 (1,632) 5,923 (2,174) 542 (1,632)