of the Problem Bill Flinders’ FVC was an outgrowth of a small company organized in 1980 for engineering and developmental work on an experimental heat-exchanger product. In 1987, as soon as the product was bought to the commercial stage, Flinder Valves and Controls Inc. was organized to acquire the properties, both owned and leased, of the engineering corporation. FVC had come to RSE’s attention with the FVC’s disclosure of a U.S. government contract. RSE manufactured a broad range of products
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Controls Inc: Potential Merger and Acquisition with RSE International Corporation Executive Summary We are presented with the opportunity to evaluate two enterprises, which are in discussion over a possible acquisition. Flinders Valves and Controls Inc. (FVC) achieved a reputation for engineering excellence from its capability in providing specific applications for the defense and aerospace industries. Because of its reputation and excellence, FVC out-grew its small company, organized in 1980, and
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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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Case : Flinder Valves and Controls Inc. 1. Overview Kasus Rencana pengakuisisian Flinder Valves and Controls Inc. (FVC) oleh RSE International Corporation (RSE) pada awal 2008. Masa itu adalah masa krisis ekonomi di amerika serikat, kedua perusahaan tersebut merasakan dampak dari krisis tersebut. Tujuan dari dilakukannya akuisisi tidak lain karena kedua pemimpin perusahaan tersebut memikirkan tentang risiko dan peluang dari lingkungan manufaktur yang semakin menantang. Valve memproduksi
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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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“Yourlastnames _Project3.doc”. ASSIGNMENT: Assume that you are employed by RSE’s financial department and that you are charged with performing financial analysis of the merger with FVC. You are given the data that are included as Exhibits 1 through 10 in the case study. Your tasks are as follows. 1. Estimate the value of FVC to RSE using the discounted cash flow (DCF) valuation method discussed in class. Your estimates should include: expected future free cash flows to the firm (FFCF), weighted average
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