Spyder Active Sports

Case Study
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Spyder Active Sports

1. How, if at all, does the value of Spyder depend upon its ownership structure? What are the (other) primary determinants of value?

Current ownership structure
CHB 37,9 %
Jacob 25,4 %
Shimokubo 25,4 %
Employees 11,3 %
SUM 100,00 %

New investors would influence the company policy and operation.
If the change would have positive or negative effect is not known now.

Other values of determination are:
Advertisement, brand marketing, competition, brand value, scope of expansion, goodwill, supply channel the product portfolio.
Besides the experience and innovation in a company influences the value a lot.

2. Prepare estimates of value based on DCF and the trading and transaction multiples presented in the case. How well do these estimates reflect the considerations you believe to be most pertinent?

2004
2005
2006
2007
2008
Literature
EBITDA
9582
13771
16983
21777
27895
Exh 5
D/A
-744
-1078
-2097
-3260
-3098
Exh 5
IntExpenses &Bank Fees
-864
-1.260
-1.396
-1.769
-2.263
Exh 5
EBIT
7992
11.433
13.490
16.748
22.534 taxes (40%)
-3196,8
-4573,2
-5396
-6699,2
-9013,6

EAT
4.795
6.860
8.094
10.049
13.520

IE & Bank Fees * (1-t)
-508
-756
-838
-1.061
-1.358

NOPAT
5.303
7.616
8.932
11.110
14.878

D/A
744
1.078
2.097
3.260
3.098
Exh 5
Capital Expenditure
-1.797
-2.619
-3.000
-3.500
-4.250
Exh 5
Net Working Capital
-69
-1.521
661
-363
-167
Exh 5
FCF
4.181
4.554
8.690
10.507
13.559 Terminal Value

691.796
*13.599/(WACC-GrowthRate)
Summe

705.355 Present Value
4.181
4.238
7.525
8.467
528.908
*Firm Free CF/ (1+WACC)^t
DCF

553.318

Current Risk Free Rate
4,15%
Market Risk Premium
6,50%
CAPM Cost of Capital
8,75%
Cost of Dept
6,00%
Discount Rate
14,75%
βA (βU * (1+D/E)
94,67%
Tax Rate
40%
D/V
25%
E/V = (1-D/V)
75%
WACC
7,46

Trading Multiples

Source
Average Sales Multiple
1,35
Exh 8
Average EBITDA Multiple
9,75
Exh 8

Net Sales

Source
Value based on Sales