T.Eaton recently got deprived of its shield from bankruptcy, its Canada’s biggest chain of department stores. It was established in 1869 and it now intends to raise $175 million through an initial public offering (IPO). Investment bankers need to consider the appropriateness of the time for the dilemma and must establish the appropriate share price.
The case describes the bankruptcy protection process and North American retail industry trends and provides a thorough discussion of the IPO process and its valuation factors. Comprehensive comparables are provided for firms such as Nordstrom's, Federated, and Dillard. 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: 01/29/1999
This is just an excerpt. This case is about Finance
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