Business Analysis & Valuation
A write up part that needs to contain your views on / answers to the following questions:
How has the company grown ? What is the basic strategy and how has it evolved ?
What role has the marketing and credit policy played in company’s growth ?
How well has Ceres performed ? How should its performance be measured ?
How has the stock market responded to company’s performance ? Why ?
Evaluate Ceres’s marketing efforts; Should the Get Ceres program be expanded ? Why or why not ?
If you were the CFO would you say Ceres is financially healthy (now) ?
What part of financial statements may lead you to believe yes or no ?
What are the risks faced by the company ? (list them).
What should the company do ? (list and discuss your conclusions).
Do you have a list of immediate actions that can be implemented ?
What about medium and longer term ?
An excel analysis:
Interconnected revolving model is being supplied with this document (definitely analyze how it works and how it is interconnected).
It consists of three separate sheets: I/S, B/S and C/F, along with a sheet for “driving” Assumptions (for now these are “dummy” figures).
Given that the model is interconnected, you will get far more visibility on the impact assumption make on projected financial statements.
Your task is to present I/S, B/S and C/F forecast for at least the next two years (2007 and 2008).
What do you believe will happen in 2007 ? Show it in excel.
Based on your projections, is the company expected to be in breach of any the debt covenants?
