...their situation and final decision. They analyzed the value of the acquisition of Robertson Tool Company in multiple ways to get a complete understanding of the situation. The fits thing they brought forth was their problem statement and assumptions. We disagreed with their problem statement in the manner that it did not present an actual problem, but rather a goal for Monmouth Inc. To go along with their problem statement to develop the solution, they presented many assumptions that had strong support such as a Beta of 1.0, the forecast horizon and the future cash flows calculated by the CEO of Monmouth. However, many of their assumptions were very optimistic and included a solution to the problem. Assuming that equity is all that is available and will be used for a company to make an acquisition eliminates many financing options as well as states that they are going to acquire Robertson Tool Company. The second assumption they made without any support is the cost to acquire Robertson. The price of $50 dollars per stock from Simmons is acceptable, as it is stated in the case; however, they show no support for $57 per share for Robertson Tool Company shares. They follow their assumptions with financial calculations and ratios to support purchasing the shares. The ratios are the first and ultimately only sign in their calculations that oppose buying the shares in Robertson Tool Company. However, we agree and liked the subjective as well as financial adjustments Monmouth...
Words: 932 - Pages: 4
...MONMOUTH ACQUISITION OF ROBERTSON 1. If you were Mr. Vincent, Ex VP of Monmouth, Inc., would you try to gain control of Robertson Tool in May 2003? 2. What is the maximum price that Monmouth can afford to pay, based on a discounted cash flow valuation based on market multiples of EBIAT? 3. Why is Simmons eager to sell its position to Monmouth for $50 / share? What are the concerns of all alternatives for each of the other groups of Robertson shareholders? 4. What offer would you make in an effort to gain the support of the Robertson family and the great majority of the shareholders, while improving the long-term trend of Monmouth's earnings per share over the next five years? . Monmouth buying Robertson -Simmons NPD -MONMOUTH BACKGROUD - Leading producer of Engines and compressors for oil pipelines. They are looking to expand into various markets to avoid performance based on cyclical trends of the economy because their performance is so heavily based on the activity of oil and gas. -Acquisition requirements. 1.) Acquire a company in which Monmouth can be a major player. 2.) A fairly stable with abroad markets. 3.) Acquire only a leading company in their respective market segments. 1st ACQUIRE DESSEX (Measuring Rules and Tapes) 2nd ACQUIRE KEANE (Fastening Tools) 3rd ACQUIRE KROLL (Soldering Tools) .Monmouth had a deep interest in acquiring Robertson a leading hand tool company. Robertson has a 50 % Market share of the 75 Million $...
Words: 397 - Pages: 2
...To escape their dependency on a single industry, Monmouth managed to reduce their business risk by acquiring small different industrial manufacturers in addition to becoming a market player in the hand tool business, by acquiring 3 of the market leaders, a move that diversified Monmouth’s business and ultimately reduced their business risk. In analyzing the financial risk, the continuous acquisitions have definitely increased the operational risk for the company. Since the case didn’t provide us with the financial statements for Monmouth, we can assume that in order to complete the acquisition they have to issue stocks as they exhausted (or will pretty soon exhaust) their debt capacity. 2. Based on the DCF valuation and using a WACC of 8.25% (the beta assumed to be 1, the average beta of comparable firms and the coupon rate to be 7.96%, the rate for BB rated companies) and a growth rate of 5.5%. The fair price is $40.4 per share for Robertson, lower than the $50 offered by Simmons to sell their stocks but higher than the current market price of $30. As for the peer multiples, and due to the lack of information for the comparable companies we only managed to calculate the EBIAT multiple, the earnings multiple and the book value multiple using the three comparable companies, Actuant Corp, Snap On Inc., and Stanley Works. The result of the multiple valuation showed a fair price of $40.1 per share based on the EBIAT multiple and a value of $29.61 per share based on the earnings...
Words: 681 - Pages: 3
...1. Yes. Robertson Tool Company had been going through a few years of low sales and profit, and, coupled with conservative financial and accounting practices, was far behind the normal growth rate for companies in its industry. Robertson’s 50% control of the market for clamps and vises, along with its good position in the scissors and shears’ $200 million market, let it compliment the diverse holdings of Monmouth. These are attractive attributes of Robertson, but the selling point lies in the distribution network consisting of 2,100 wholesalers and 15,000 retail outlets. The Robertson products are sold in 137 countries worldwide. This avenue to market Monmouth and Robertson products across resources could lead to above average growth and profits. 2. What is the maximum price that Manmouth can afford to pay: a. DCF base: i. WACC 1. Unlevered Equity Beta – 0.725 2. Market Value of Debt - $12m 3. Market Value of Equity - $25,696m 4. Debt/Capital - 32% 5. Levered Equity Beta – 0.86 6. Risk Free Rate – 4.10% 7. MRP – 6% 8. Cost of Equity – 9.28% 9. Cost of Debt – 6.07% on BBB rating 10. Tax Rate - 40% 11. WACC: a. Debt – 31.8% @ 3.64 b. Equity – 68.2% @ 9.28 c. WACC = 7.5 ii. Terminal Value - TY FCF = $4.9m*(1+0)/(0.075-0) = $65.33 iii. FCF:...
Words: 299 - Pages: 2
...1. Yes. Robertson Tool Company had been going through a few years of low sales and profit, and, coupled with conservative financial and accounting practices, was far behind the normal growth rate for companies in its industry. Robertson’s 50% control of the market for clamps and vises, along with its good position in the scissors and shears’ $200 million market, let it compliment the diverse holdings of Monmouth. These are attractive attributes of Robertson, but the selling point lies in the distribution network consisting of 2,100 wholesalers and 15,000 retail outlets. The Robertson products are sold in 137 countries worldwide. This avenue to market Monmouth and Robertson products across resources could lead to above average growth and profits. 2. What is the maximum price that Manmouth can afford to pay: a. DCF base: i. WACC 1. Unlevered Equity Beta – 0.725 2. Market Value of Debt - $12m 3. Market Value of Equity - $25,696m 4. Debt/Capital - 32% 5. Levered Equity Beta – 0.86 6. Risk Free Rate – 4.10% 7. MRP – 6% 8. Cost of Equity – 9.28% 9. Cost of Debt – 6.07% on BBB rating 10. Tax Rate - 40% 11. WACC: a. Debt – 31.8% @ 3.64 b. Equity – 68.2% @ 9.28 c. WACC = 7.5 ii. Terminal Value - TY FCF = $4.9m*(1+0)/(0.075-0) = $65.33 iii...
Words: 409 - Pages: 2
...This paper is about the complexity of managing organizations. As theoretical groundwork the book Organising and Managing Work by Tony Watson will be used. The book by Tony Watson covers issues about organizational, managerial and strategic behavior. In particular, the author argues for a critical common sense and the use of philosophical pragmatism (Watson, 2006). He also questions the way work is organized and managed. Finally, the process-relation perspective, a critical perspective of how to think about organizations and their relations and interactions with people, is taken by Watson (2006). This paper will start with a description of the two theories “System-control framing” and “Process-relational framing”. Afterwards the three concepts strategic exchange, negotiated order and double control will be defined and exemplified by different cases from the course. Finally, the paper will look into the complexity of managing knowledge at organizations supported by examples from Danone and McKinsey. In the field of leadership and management studies, there are two main perspectives “System-control framing” and “Process-relational framing”, which can help to analyze and make sense of complex organizations. The system-control perspective recognizes organizations as an entity that is “a system of managerially designed rules and roles existing on its own terms […] based on an organization design with a set of structural and cultural characteristics” (Watson, 2006, p.30). According...
Words: 3258 - Pages: 14
...Computer Memory Hacking NAME Professor CIS 106 November 20, 2014 Technology continues to evolve exponentially. However these technological advancements continue to pose a threat to both individuals and information resources of companies and governments. There is therefore the need to protect one’s data and information due to the emerging threats and risks. Hacking is where third parties create a backdoor version of a hardware and software so as to manipulate or unlock hidden functionalities on a machine. Most of these hacks are open source and free soft wares. These hacks manipulate the firmware update option on many devices to run and install themselves. Many researchers have found out that breaking into a computer’s encrypted hard drive is very easy with the help of the right tools. A research by Princeton University revealed how low tech hackers access even the most well protected computers (Jordan Robertson 2008). This paper details how encryption was coveted for a long time as a vital shield against hackers, but can be manipulated by altering the operations of the memory chips. This paper outlines just how vulnerable the data we store on our computers and laptops is to possible hacking. Through freezing the Dynamic Random Access Memory (DRAM) chip, which is the most frequently used memory chip in personal gadgets. Freezing DRAM makes it retain data for many hours way after the machine loses its power. This data includes the keys used...
Words: 901 - Pages: 4
...Assignment 1: Computer Memory Hacking Professor Carl Brown CIS 106 Technology continues to evolve exponentially. However these technological advancements continue to pose a threat to both individuals and information resources of companies and governments. There is therefore the need to protect one’s data and information due to the emerging threats and risks. Hacking is where third parties create a backdoor version of a hardware and software so as to manipulate or unlock hidden functionalities on a machine. Most of these hacks are open source and free soft wares. These hacks manipulate the firmware update option on many devices to run and install themselves. Many researchers have found out that breaking into a computer’s encrypted hard drive is very easy with the help of the right tools. A research by Princeton University revealed how low tech hackers access even the most well protected computers (Jordan Robertson 2008). This paper details how encryption was coveted for a long time as a vital shield against hackers, but can be manipulated by altering the operations of the memory chips. This paper outlines just how vulnerable the data we store on our computers and laptops is to possible hacking. Through freezing the Dynamic Random Access Memory (DRAM) chip, which is the most frequently used memory chip in personal gadgets. Freezing DRAM makes it retain data for many hours way after the machine loses its power. This data includes the keys used to unlock encryptions. If the...
Words: 901 - Pages: 4
...begins with a single step.” This Chinese proverb helps people focus on the present, rather than the unmanageable future. Project teams can take several small, easy steps to improve requirements to the point where they’re good enough. But every project is different. Your team might need to take steps that wouldn’t be right in other situations. The basic steps listed here, roughly in order, demand nothing more than a whiteboard or a pen and paper. Requirements management tools and specialized models can help later on. where software is just a (large) component. Later, you can analyze each interface in detail. Step 1: Mission and scope If you don’t know where you’re going, you’re not likely to end up there, said Forrest Gump. Is your mission clear? Write a short statement of what you want your project to achieve. Out of that will grow an understanding of the project’s scope. The scope will develop as you more clearly understand exactly what achieving the mission entails. A traditional context diagram is a good tool for describing scope in a simple outline. Unlike a use-case summary diagram, it indicates interfaces and the information or materials that must come in or out of them, rather than just roles (that is, UML actors). This becomes especially important when specifying physical systems 0740-7459/06/$20.00 © 2006 IEEE Step 2: Stakeholders Requirements come from people, not books. You can look in old system documents and read change requests, but you must still validate...
Words: 1692 - Pages: 7
...choose are the ones who will perform better than rejected applicants?” (Cooper & Robertson, 1995:3).For all organisations recruiting the best staff for the job can be extremely difficult due to the multiple recruitment processes available and the different traits each employee can possess. When a company is choosing a recruitment process it must look at the reliability of the test by looking at the consistency of results of a test and the validity of the test must also be considered as the test must measure what it is set out to measure. (Arnold et al, 1995:131) A company must also consider the cost and effectiveness of the recruitment process they choose. There are many tools of selection which an organisation can use, for example, interviews, psychometric tests and application forms. With regards to the recruitment of effective routinized service, retail or call-centre workers I believe that psychometric tests are the most appropriate selection process for these jobs. Psychometric testing refers to the testing carried out on individuals in order to measure their ability in a specific area of working. These tests can measure all kinds of traits such as sensitivity, memory, intelligence, aptitude or personality. Psychometric tests are becoming increasingly used by employers to choose the right individual that fits a certain job entry. The term ‘psychometric tests’ covers a wide range of tools, but the types of test that are most relevant to recruiters are those that measure...
Words: 1103 - Pages: 5
...we will call Mr Black. I will then reflect upon his application of each in term of strengths, weaknesses, opportunities and threats in respect to his teaching practice. The subject, Mr Black, is retained by one organisation to conduct training and assessments for a specific group of tradesmen who will be working on a major infrastructure upgrade project. The duration of his contract is to be no more than 4 years. Mr Blacks’ background is in a related technical field and he holds a Certificate IV in Training and Assessment therefore he falls into the VET stream of Education Robertson (Robertson I. , 2008) has suggested that Certificate IV in Training and Assessment may provide enough opportunity to develop the applied skills required for an expert teacher. Teachers working in Vocational Education and Training (VET) face in an increasingly complex and diverse environment as highlighted by Robertson (Robertson I. , 2007) Teachers and teaching roles come in all shapes and sizes and so it is true of each individual teaching identity, teaching knowledge and which of the major learning theories each teacher chooses to apply. Teacher Identity in relation to Knowledge Bases Mr Black, a man with a personality as large as his 6’8 frame who has been in his chosen industry for nearly 30 years , has been delivering training for nearly half of that time. When we look at the knowledge bases that...
Words: 3150 - Pages: 13
...ENTERPRISE ARCHITECTURE Author: Institution: Date of Submission: Introduction During the early days of computing, the new technology simply automated the contemporary manual processes with increased efficiency. As the new technology continued to evolve, new innovations paved the way for introduction of new processes and capabilities that were largely driven by information technology. Over time, information technology altered the business environment though not necessarily in conformation with the conventional business strategies. The resulting lack of alignment precipitated unanticipated loss of resources and missed opportunities, thus placing most organizations in competitively disadvantaged positions within the market. In order to align the business strategies with organizational objectives, a new approach for managing Information technology has been established. This new concept is referred to as Enterprise Architecture. Enterprise architecture refers to ways or means of describing organizational structures and processes that link the individual business structures. It is the practice of applying a rigorous and comprehensive method for illustrating a current or outlook of a business’s information systems, processes, personnel, and the business sub-units so that they can be in conformity with the organization’s key objectives and strategic direction. This means that enterprise architecture is a strategic information asset base that...
Words: 1394 - Pages: 6
...because people are driven and tend to exert effort when their job satisfies a need important to them. Although employers are encouraged to motivate their workers, motivation truly begins within. Innate motivation is something that is self generated and can be changed when there is willingness from the person. Just because one has the talents and gifts doesn’t mean he or he will be motivated to use that skill. Christine Robertson says, “Managers who take time to learn about intrinsic motivation will discover what motivated abilities are within their workers. Managers can then structure jobs to take advantage of these motivations leading to better productivity, creativity and happier workforce as the job will be lined up with their personal gifts and talents”. Employees need to hear from leadership; be it how the company is performing, how the employees are doing performance wise. Most employees appreciate feedback and feel part of a team when they are informed. Without regular motivation, the workers can lose interest in their job, management and the company. Effective managers equip, educate and empower their employees to perform. It is much easier for individuals to take ownership of the results expected of them when they have clear understanding and training required to fulfill the task. Once an individual is empowered with information and appropriate level of accountability and authority, taking ownership becomes natural to them. The...
Words: 1217 - Pages: 5
...assessments is comprehensive performance evaluation tool that allows multi-raters, peer groups, co-workers, supervisors to provide feedback regarding an employee’s performance. This information is typically requested by a next level supervisor or manager of whom the employee reports to. 360 reviews emphases on the skills and contribution that an employee makes. The goal is to provide a balance of how others view the employee’s contribution, which includes performance, leadership, interpersonal communication, teamwork and management skill, personal vision and accountability (Heathfield). We will determine if it’s beneficial for Bank of America to use the 360- degree assessments based on this week’s findings. Analyzing 360-Degree Assessments There are many positive aspects to 360-degree assessment feedback such as improved feedback from more sources, promotes team development, it helps teams work more effectively together. 360-degree assessments also promote improved customer service. 360 degree feedback has been known to be one of the best methods for understanding personal and organizational development needs. Furthermore, various employees feel 360 degree feedback is more accurate, more reflective of their performance, and more validating than previous feedback from the supervisor or manager alone. This makes the information more useful for both career and personal development. According to ASTD, 75% of these companies provided individual development plans, and 33% provided...
Words: 1606 - Pages: 7
...• • • Gordon Biersch Case Questions: 1. Identify the key factors responsible for the success of Gordon Biersch to date. What concerns, if any, do you have as the company looks ahead? 2. Evaluate Gordon Biersch's organizational alternatives to realize its growth ambitions. Recommend a course to follow? 3. Evaluate Gordon Biersch's efforts to raise outside capital. What would you have done differently? 4. Which offer, if any, should Gordon Biersch accept? Why? How should they proceed? 5. Assume for discussion purposes that Lorenzo Fertitta's proposal is the preferred option. What are the key issues for Gordon and Biersch to negotiate? What positions should they take on each one? Table Of Content: Case Summary Critical Issues Critical Analytic Tools Recommendation Answers to Case Questions Bibliography Case Summary The masterminds behind Gordon Biersch were two individuals, Dan Gordon; a qualified brewing engineer from the esteemed University of Munich, Germany, and Dean Biersch; who had a passion for food service and a vast experience in the food and beverage sector. Their unique idea of a microbrewery and fine dining restaurant stemmed from a law amendment of California in 1983 which allowed brewing and serving of beer in the same locale. They envisioned the concept of providing high quality fine dining with outstanding service in an attractive ambiance featuring exceptional German-style lagers in on-site breweries. Their target...
Words: 5459 - Pages: 22
