Canada's biggest private grocery outlet, which is T. Eaton Company Ltd., was founded in 1869. It had recently emerged from bankruptcy protection and was now intending to raise $175 million through an initial public offering (IPO). The proper share price must be determined by investment bankers and consider the appropriateness of the timing for the problem.
The case describes North American retail business trends and the bankruptcy protection process and provides a thorough discussion of valuation factors and the IPO process. Comprehensive comparables are provided for such firms as Dillard, Nordstrom's and Federated. The case provides the opportunity to implement a number of valuation techniques, including discounted cash flow, price-to-earnings multiples and enterprise value-to-EBITDA multiples.
Publication Date: 08/25/1999
This is just an excerpt. This case is about Finance
Related Case Solutions & Analyses:
BANEX and the No Pago Movement (A)
Pacific Century CyberWorks: The Road to Privatisation
AMG Inc. & Forsythe Solutions: Lease vs. Buy Decisions
Saito Solar – Discounted Cash Flow Valuation
The Maple Acquisition of the TMX Group Inc.
The High-Yield Debt Market
The IPO Issue Process: Before and After the JOBS Act
Daktronics (E): Dividend Policy in 2010
Deutsch Bank
A Project Dilemma at Canadian Shield Insurance
