W.B. “Bill” Flinder, the president of Flinder Valves and Controls Inc. (FVC), and Tom Eliot, the Chairman and CEO of RSE International are currently in the midst of negotiating a merger of FVC and RSE. Both companies are aware of the benefits, but also remain apprehensive due to the risks of completing an acquisition in the struggling economy. Prior to 2008, the U.S. manufacturing industry had experience a decrease in consumer demand because of tighter borrowing standards and a weak housing sector
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Flinders Valves & Controls Inc. (FVC) is located in Southern California. The firm manufactured specialty valves & heat exchangers. About 40% of volume & 50% of profit come from special application for the defense & aerospace industries. RSE International Corp was founded by Tom Eliot in 1970. In the year 2008, it manufactured a broad range of products including advanced industrial components as chains, cables, nuts & bolts, castings & forgings etc. The firm is considered a low-cost producer that
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FIN 465, Fall 2010-11 PROJECT # 3, FLINDER VALVES AND CONTROLS CASE STUDY In this project, you will estimate the value of a target company in an acquisition and propose a range of exchange ratios acceptable for the target and the acquirer. Please find the full assignment below. You can use only Excel for all calculations. You can use Word for a write-up. There is no limit on the length of the write-up, but I ask you to be concise. Please annotate your Excel calculations so
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