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Case from journal
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Reference no. JIACS12-03-04
Published by: Allied Business Academies
Published in: "Journal of the International Academy for Case Studies", 2006
Length: 12 pages
Data source: Field research

Abstract

This case describes the challenges faced by Chris Johnson, who for years has nurtured a dream of owning a golf course. As a successful insurance agency owner and accomplished golfer, Mr Johnson hopes to one day make his dream a reality. Opportunity arises when Golf Corp LLC, a leading national golf course owner and operator in the US, decides to sell Riverside Country Club, an entry-level semi-private course located near Mr Johnson’s residence, in an effort to refocus its corporate strategy toward operating higher-end properties. Mr Johnson now has an opportunity to realize his dream, but is uncertain as to the fair value of acquiring Riverside. The primary subject matter of this case concerns the business valuation process. Secondary issues examined include the challenges of valuing small, privately held businesses and determination of an appropriate discount rate. The case requires students to have an introductory knowledge of accounting, finance and general business issues, thus the case has a difficulty level of three (junior level) or higher. The case is designed to be taught in one or two class sessions of approximately 1.25 hours (depending on the level of detail covered) and is expected to require 3-4 hours of preparation time from the students.

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Abstract

This case describes the challenges faced by Chris Johnson, who for years has nurtured a dream of owning a golf course. As a successful insurance agency owner and accomplished golfer, Mr Johnson hopes to one day make his dream a reality. Opportunity arises when Golf Corp LLC, a leading national golf course owner and operator in the US, decides to sell Riverside Country Club, an entry-level semi-private course located near Mr Johnson’s residence, in an effort to refocus its corporate strategy toward operating higher-end properties. Mr Johnson now has an opportunity to realize his dream, but is uncertain as to the fair value of acquiring Riverside. The primary subject matter of this case concerns the business valuation process. Secondary issues examined include the challenges of valuing small, privately held businesses and determination of an appropriate discount rate. The case requires students to have an introductory knowledge of accounting, finance and general business issues, thus the case has a difficulty level of three (junior level) or higher. The case is designed to be taught in one or two class sessions of approximately 1.25 hours (depending on the level of detail covered) and is expected to require 3-4 hours of preparation time from the students.

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