Case Analysis: DuPont Corporation Sale of Performance Coatings Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Case Analysis: DuPont Corporation Sale of Performance Coatings Case Solution

1 Introduction

Ellen Kullman, the CEO of the DuPont Corporation was considering a report which was made on the organizational performance Coating Division in January 2012. Before a month, she rejected the gossip that the company was available for sale and it was looking for buyers who were able to pay the potential price of the company. Moreover, the CEO of the company expressed her idea that she thought that it was a great time to check either the company can meet the selling criteria or not. Finally, she said and shared her point of view that “From an execution stance we will allow them to check whether they can arrive”.

2 Potential Value to an Outside Party

The CEO of the company required an internal audit to check the real worth of the business and ensure that whether holding the business or selling it is more feasible. However, another reason for this audit was that she wanted to compare the internal structure of the company and to match it with the outside factors. Furthermore, she also wanted to gather facts which could be the value of the business and how much amount can the investors pay for it. Finally, those reports were created presently and Kullman would need to choose whether to stay in the business or to sell it and if selling it is a better option, then what should be the price.

However, the fact is that the company is working in a violent situation; the industry growth rate was slow and steady and the company belonged to an industry where change took place on a very slow pace. Nonetheless, simple change in the business was also outdated. The company evaluated the value of DPC to ensure whether it should be a part of the company or not. DuPont central focus on DPC was the revenue growth and its continuous development around 3% to 5%. Moreover, the working was going on almost 10% to 12%. However, the division was known for reputation and its execution, as well as, the limited survey focused on 4% for the development of the department and 10% for edges, the small end of the focused on reach. In addition, the stand alone valuation of the company was also performed and it showed a value of approximately $4 billion for the division.

3 Kullman’s Vision for the Firm

Following the growth path and becoming a more reputed and well-maintained company from the Old DuPont. There are several drivers which can ensure the profitabilityof the company and they are also liable for the company’s strategic growth. These factors include Agriculture, Nutrition and Health, Performance chemicals and other industrial products. However, the CEO of the company forecasted that the future growth of the company and its strategic competitiveness were based on mechanical biotechnology, while the other factor was the agribusiness, and propelled materials biotechnology.

4 Acquisition from a Strategic Buyer

During the period 2006-2011, several deals to key purchases had been the most continuous method of the way out by PE firms. However, these deals were done due to the size of the PE sector. Moreover, Initial Public Offering was the most common way to raise capital in emergency capital requirements and to cover up the inconsistent macroeconomic conditions. This is because major buyers wanted to be more profitable, competitive and financially strong having growth potential and objective to sustain and compete in the market. Finally, those buyers were more cautious to pay the exact price instead of the commercial purchasers.

However, she set a minimum price for bidders, as well as her standalone valuation for the division recommended that the division has a net worth of around $4 billion to DuPont..........

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