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28-08-2018

Product code: Accounts-AW466

I have wcase study for finance, I need to calculate the info below, and need some graphs to also compare differences of losses during shut down between the  company (Market Basket) and it's 3 competitors during th 6 weeks it was shut down.

Information:

-Demoulas  Market Basket  has -71 stores,25000 employees, $4 billion in annual revenue, no debt). it all stores were shut down for  6 weeks,  Because MB is private, you are free to make assumptions… just follow other industry guidance attached.  

 

-from reports it has approximately 70 million dollars a day, about a million from each of the 71 stores.

 

-Its Competitors are public companies (information is online, Hannaford Bros. supermarkets, Stop & shop, and Shaw's Supermarket.

 

Questions:

Estimate Enterprise value using calculated EBITDA?

What were the losses for 6 weeks of shut down?

Perform sensitivity analysis that provides the purchase price present value

Find the Market Baskets’ Enterprise value, and compare with purchase price?

5)  What is the    Seasonality of the Super Market industry?

 

  • How should the  losses sustained impact the purchase price?
    • Market Basket’s weekly and annual take
    • Seasonality of the Super Market industry
    • Compare Market Basket with seasonality
    • Find the Market Baskets’ Enterprise value, and compare with purchase price
    • Find out if Market basket is debt free
    • And what was the effect of its operation during the strike
    • Note: Supermarkets have a 2% return, and they buy based on volume
    • Compare Market Baskets purchase price vs. it’s enterprise value
    • Why has the decision took so long?
    • Have they negotiated a letter of intent?
    • Show MB’s Present Value
    • Estimates on sensitivity analysis
    • Who wins?  
    • If Sales = X does  Arthur T. Demoulas  win,  or does Arthur S. Demoulas win if sales = Y
    • Were there any favorable tax deals for the company

 

Download Questions

The entreprise value of Market basket is lower compare with the purchase price because of higher revenue which in turns lead to higher EBIDTA as per industry standard. It means rising revenue will increase the netrprise value for the firm in this industry

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