潮外经舍餐多卡是 公司理财 The proposed investments in repairs and storage space would be written off over a 10-year period using the straight-line method of depreciation.A breakdown of the operating expenses for the most recent year revealed that the depreciation charge was currently f350,000 per annum,which is in line with depreciation charges in recent years.The managers believed that the additional depreciation resulting from the investment programme could be offset by savings elsewhere and so operating profit margins would not be affected. The managers were aware that a financial backer was needed for the management buyout proposal.They decided,therefore,to approach Ballymena Investments Ltd,a venture capital business,with their buyout proposal and with forecasts concerning sales and the proposed investment programme for the next five years.At the first meeting between the managers and the venture capital company representatives,the likely buyout price was discussed.It was believed that the Board of Directors of Coleraine Holdings Ltd would accept a price based on a multiple of either 10 or11 times the most recent operating profit.For the agreed buyout price, all the assets relating to the yachting operation would be transferred,however,the outstanding loans would remain with the holding company. Ballymena Investments Ltd were asked to invest f15m in exchange for 70 per cent of the ordinary shares in Coleraine Yachts Ltd.The managers would invest f2,410,000m in return for the remaining 30 per cent of the share capital.Any further finance needed to acquire the company would take the form of 10 per cent loan capital for a ten-year period,which the managers believed would be provided by the bank.If the company were to be sold during the loan period,the amount of loan outstanding would be repayable immediately.The net cash flows generated by the company would be used to repay the loan capital and there would be no dividends payable in the first five years following the acquisition. The directors of Ballymena Investments Ltd met to discuss the proposal made by the managers of Coleraine Yachts Ltd.Little was known about the managers involved in the buy out proposal.Tom Ards,the general manager of Coleraine Yachts Ltd,led the management group.It was known that he had been with the business for five years and before this,had owned a car sales business.It was also known that the other members of the management team had been with the company for an average of twenty-five years.However,much more information would be needed before a final decision could be made.Ballymena Investments Ltd placed great emphasis on the management team when evaluating investment proposals. The Senior Investment Analyst of the company was fond of saying that it was better to invest in a first-class management team with a second-class product than vice versa. If Ballymena Investments Ltd agreed to invest in the proposal,the preferred investment period would be five years.The venture capitalist would then look to sell its stake in the business at a selling price of between 12 and 14 times the most recent operating profits.A.trade sale.to another business in the yachting industry was considered to be the most likely exit route.Ballymena Investments Ltd evaluates new investment proposals using the internal rate of return method and has a cost of capital of 26 per cent. All workings should be to the nearest f000. Ignore taxation. 第3页共9页公司理财 The proposed investments in repairs and storage space would be written off over a 10-year period using the straight-line method of depreciation. A breakdown of the operating expenses for the most recent year revealed that the depreciation charge was currently £350,000 per annum, which is in line with depreciation charges in recent years. The managers believed that the additional depreciation resulting from the investment programme could be offset by savings elsewhere and so operating profit margins would not be affected. The managers were aware that a financial backer was needed for the management buyout proposal. They decided, therefore, to approach Ballymena Investments Ltd, a venture capital business, with their buyout proposal and with forecasts concerning sales and the proposed investment programme for the next five years. At the first meeting between the managers and the venture capital company representatives, the likely buyout price was discussed. It was believed that the Board of Directors of Coleraine Holdings Ltd would accept a price based on a multiple of either 10 or11 times the most recent operating profit. For the agreed buyout price, all the assets relating to the yachting operation would be transferred, however, the outstanding loans would remain with the holding company. Ballymena Investments Ltd were asked to invest £15m in exchange for 70 per cent of the ordinary shares in Coleraine Yachts Ltd. The managers would invest £2,410,000m in return for the remaining 30 per cent of the share capital. Any further finance needed to acquire the company would take the form of 10 per cent loan capital for a ten-year period, which the managers believed would be provided by the bank. If the company were to be sold during the loan period, the amount of loan outstanding would be repayable immediately. The net cash flows generated by the company would be used to repay the loan capital and there would be no dividends payable in the first five years following the acquisition. The directors of Ballymena Investments Ltd met to discuss the proposal made by the managers of Coleraine Yachts Ltd. Little was known about the managers involved in the buy out proposal. Tom Ards, the general manager of Coleraine Yachts Ltd, led the management group. It was known that he had been with the business for five years and before this, had owned a car sales business. It was also known that the other members of the management team had been with the company for an average of twenty-five years. However, much more information would be needed before a final decision could be made. Ballymena Investments Ltd placed great emphasis on the management team when evaluating investment proposals. The Senior Investment Analyst of the company was fond of saying that it was better to invest in a first-class management team with a second-class product than vice versa. If Ballymena Investments Ltd agreed to invest in the proposal, the preferred investment period would be five years. The venture capitalist would then look to sell its stake in the business at a selling price of between 12 and 14 times the most recent operating profits. A .trade sale. to another business in the yachting industry was considered to be the most likely exit route. Ballymena Investments Ltd evaluates new investment proposals using the internal rate of return method and has a cost of capital of 26 per cent. All workings should be to the nearest £000. Ignore taxation. 第 3 页 共 9 页