This is an assignment to study the financial statements and information, working to provide an executive summary of the company and the range of value. Remember that you will need to justify your response. This assignment should be $1-2$ pages and it is due on Thursday, May $2.$

You are studying the financial statements $($tax information $+$ recast income and balance statements$)$ for a fairly small manufacturing company in the United States. Their product is fairly unique and is tied partly to other businesses, making them a part retail and part business to business firm. They have had some ups and downs in total revenue but because of their market niche, they are considering selling to a motivated buyer. Although you do not know the product itself, you will use the statements to determine the overall value of the company. Remember, our goal is to come up with a price that is a win$-$win for both the buyer and the seller. We are looking for the ZOPA $($zone of potential agreement$).$ Unlike the Edgar filings reports, this report is exact in dollars $($not in multiples of thousands!$).$ What is the buyer willing to pay? What is the seller willing to accept?

After studying through these statements, determine some potential problems and also some positive qualities. We have not discussed in detail recasting financial statements, but in general it helps to understand the details of the company. Give a suggested range of value for the final sell. Hint: the selling price will be over $$500,000$ but under $2$ million! Provide a range with around $$200,000$ between the high price and the low price. Justify your answer. If you have any ideas for financing the purchase, please include these recommendations. SBA loan? Owner financing? Contingency payments? Cash? Earn$-$out?

Couple more things to consider. This is a well$-$run company with a steady customer stream. Their marketing is limited to the actual market for the product, although they potentially have a global reach. Their facility has room for expansion and they benefit from labor and no union restrictions other than normal employment regulations. You are encouraged to reference details in the statements that standout. Remember, too, that valuation cannot be based on just one year.

For fun, let's give this company a name: Protech Industries and Manufacturing.