Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Version: 9 January 2003
Length: 6 pages
Data source: Field research
Share a link:
https://casecent.re/p/42120
Write a review
|
No reviews for this item
This product has not been used yet
Abstract
Health Development Corp (HDC) owns and operates health clubs in the Greater Boston Area. HDC engaged a local investment banker to explore a sale of the company. The most likely buyer views HDC's prior purchase of real estate as a negative. HDC's management is convinced the purchase enhanced value, and a discounted cash flow analysis confirms that it was a substantially positive net present value decision. Nevertheless, the real estate reduces the valuation according to the approach used by the potential buyer. The challenge is to structure a transaction that allows HDC to realize its full value.
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 9 pages
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Format:
.xls
Data source: Field research
About
Abstract
Health Development Corp (HDC) owns and operates health clubs in the Greater Boston Area. HDC engaged a local investment banker to explore a sale of the company. The most likely buyer views HDC's prior purchase of real estate as a negative. HDC's management is convinced the purchase enhanced value, and a discounted cash flow analysis confirms that it was a substantially positive net present value decision. Nevertheless, the real estate reduces the valuation according to the approach used by the potential buyer. The challenge is to structure a transaction that allows HDC to realize its full value.
Settings
Related
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Length: 9 pages
Subject category:
Finance, Accounting and Control
Published by:
Harvard Business Publishing
Format:
.xls
Data source: Field research