Linders Valves and Controls Inc Finance Case 43

Each student will produce a Term Paper due on Thursday of the 4th week of class. Download the spreadsheet for Case 43 Flinder Valves and the Appendix documents to complete this analysis. We will then complete the following case in your book using what we have learned in our research.

Case 43: FLINDER Valves and Controls Inc. (page 609)
Set in May 2008, this case reflects the separate perspectives of chief executive officers Tom Eliot and Bill Flinder as they approach the negotiations of RSE International Corporation to acquire Flinder Valves and Controls Inc. The task for the student is to complete a valuation analysis of the target.

Since this is a formal paper, it should include:
a? An introduction (tell us what you plan to tell us, in general)
a? A body (tell us the details)
a? A conclusion or summary (summarize what you told us, along with any recommendations)
a? Proper APA style references and citations throughout the text

Within the body of your paper, use the questions in the case to divide the paper up into sections. I recommend rephrasing the questions in the form of subheadings within the body of the paper.
This will make your paper easier to read and follow (and grade!). Include at least a paragraph or two for each subheading. Your paper is going to be at least two pages long, possibly longer.
Regarding APA style, a title page and executive summary are optional (though welcome). What is NOT optional includes:
1. in-text citations (BE SURE TO USE IN-TEXT CITATIONS THROUGHOUT YOUR PAPER)
2. list of references at the end

Case Questions:
1. Using the case and the supplementary data in Appendix TN1, how do you see FVCas
situation? What are the strengths and weaknesses of FVC and RSE? Why should the two companies want to negotiate?

2. What is FVC worth? What are the key value drivers?

3. What opening price do you think Flinder should offer to sell the company to RSE? At what price should he walk away from the negotiation? How did you estimate those values?

4. Do you recommend that RSE pays in cash or stock? If stock, what exchange ratio do you recommend?