Kohler Co, best known for its plumbing, large, private family firm. As part of the recapitalization, aimed at preserving the family property Kohler Co, nonfamily shareholders on 4% of the shares were to sell their shares. Group dissenting shareholders filed suit, claiming that the repurchase price of its shares undervalued five. In April 2000, Herbert V. Kohler, Jr., chairman and chief executive officer must decide to settle with the dissidents, and, if so, what fraction of the price. The solution requires a detailed assessment of the company at the time of the recapitalization.
Provides the necessary data for the students the value of a company using a discounted cash flow method and multiple (peers) approach. Students need to identify and understand the various assumptions estimates that can lead to a wide range of prices, including the application of discounts for lack of marketability and lack of control. Exhibits are available in electronic form to facilitate analysis of data (HBS 9-205-707 courses). "Hide
by Belen Villalonga, Raphael Amit Source: HBS Premier Case Collection 20 pages. Publication Date: January 12, 2005. Prod. #: 205034-PDF-ENG