MASSON FINC 624 BUSINESS VALUATION SUMMER II – 2015 Timken Co. Case Writeup Fatmah Alyami Wenting Yu Meshal Alyami Shengxu Li Tongkai Zhang Yuqing Zhang Timken Case WriteUp ● How does Torrington fit with The Timken Company? o What are the expected synergies? We believe that Torrington fits in with Timken Co. and this acquisition will generate positive operating synergies for Timken Co. The reason being is that they both operate in the same i
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| | ECONM2021Cases in Financial Management | THE TIMKEN COMPANY | (Word Count: 4000) | Candidate Nos.380843767942568 | | Executive Summary The Timken Company – a leader in the bearing industry‚ is considering acquiring the Torrington Company from Ingersoll-Rand. Torrington – an engineering solutions segment of the Ingersoll-Rand. The main motive of acquisition is to enhance Timken’s market share and product base. Operating synergies are highly expected from this merger with 80 million
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Introduction Timken Company was the leader in Bearings Industry‚ however lately the revenues had been declining owing to its cyclical nature and decreased demand for bearings. Timken was facing increased competition from Europe and Japan who were the leading manufacturers of ball bearings. To fight these imports Timken decided to pursue the strategy of bundling where in it could add additional products and services to its products and provide more value to its customers. Timken then started a companywide
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Torrington fit with The Timken Company? What are the expected synergies? Timken‚ is the inventor of the tapered roller bearing‚ and Torrington‚ the pioneer and leading global producer of needle roller bearings‚ have only a 5% overlap in their product offerings; together would make Timken a formidable company. The acquisition of Torrington will substantially broaden Timken’s product portfolio and enable deeper penetration of the global market. After the acquisition Timken will be listed in the list
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17 Executive Summary: Timken Company requires a report on its consideration to acquire Torrington from Ingersoll-Rand. This reports provides the needed information on Torrington’s worth‚ price at which Torrington could be acquired and the acquisition strategies to negotiate its deal. The evaluation uses the discounted cash flow analysis using WACC to calculate the value of Torrington worth with synergies. The value turned out to be more than the estimated minimum value of the target. The final
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and upgrade for the plant. The NPV and IRR seem to relay heavily on the terminal value of the pipeline. The Japanese technology might be more efficient in the long run than the upgrades. The Merseyside project is much simpler and costs aren’t spread over 3 years. 3. Is Elizabeth Eustace’s treatment of the right-of-way correct in her spreadsheet analysis? I don’t think it is at all correct to assume the terminal value will be $40 million in 15 years. Projecting 15 years out is a very long
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The Timken Company Top management of Timken hires you as consultants to perform an independent analysis and recommend the best‚ in your opinion‚ course of action in the proposed acquisition of the Torrington Company. Your task is to write a report that will address their questions and concerns‚ in particular: 1. 2. 3. 4. How does Torrington fit with the Timken Company? What are the expected synergies? What is your stand alone valuation of Torrington? What is your with-synergies valuation of Torrington
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Executive Summary From our DCF calculations‚ the value of Torrington as a stand-alone entity is $1.181 billion. However‚ the maximum purchase price for Torrington should only be $641 million. The optimum debt amount for this transaction would be $301 million. This amount of debt would result in a total debt to capital ratio for Torrington of 47%‚ within the range for a BBB “investment grade” debt rating. The combined entities‚ Torrington-Timken‚ would produce an interest coverage ratio of 3.2‚
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Shakeiya Thomas Mrs. Parker Journalism 8 Journalism 2014 I am a person who has many values (many of them listed below). I am also a person who doesn’t quickly dismiss the ideas of others and who tries to understand why people value or don’t value certain things. For me‚ I feel that everyone paves their own individual path with the ability to alter it if necessary‚ so I value qualities closer to inner wholeness‚ or being one with yourself. If you can truly accept and understand yourself‚ I feel like
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Case Study Report The Power of Terminal Value ARCADIAN MICROARRAY TECHNOLOGIES‚INC. Contents TOC o 1-3 h z u HYPERLINK l _Toc400235473 1. Introduction PAGEREF _Toc400235473 h 3 HYPERLINK l _Toc400235474 1.1. Object of Transaction PAGEREF _Toc400235474 h 3 HYPERLINK l _Toc400235475 1.2. Buyer Sierra Capital Partners PAGEREF _Toc400235475 h 3 HYPERLINK l _Toc400235476 1.3. Seller Arcadian Microarray Technologies‚ Inc. PAGEREF _Toc400235476 h 3 HYPERLINK l _Toc400235477 2. Methodology Analysis
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