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Wyndham Destinations Asia Pacific: Acquisition and Appraisal of Resort Frontier Co. Ltd. and Management of Sundance Resort Club Japan
內容大綱
On July 8, 2019, Barry Robinson, president and managing director of International Operations for Wyndham Destinations Asia Pacific (Wyndham Destinations AP), and Liam Crawley, chief financial officer, were in receipt of a report provided by law firm Baker McKenzie’s Corporate Mergers and Acquisitions team. Wyndham Destinations AP was in the process of acquiring the privately held Resort Frontier Co. Ltd., the management company for Sundance Resort Club. Through an affiliated corporate entity, Wyndham Destinations AP would also acquire all the forfeited and unsold points of Sundance Resort Club. This acquisition would represent the vacation ownership and exchange company’s first foray into the Japanese market. Crawley and his team would need to undertake comprehensive external and internal financial analyses and discounted cash flow analysis of Sundance and multiples valuations of comparable firms to help Robinson determine a fair offer price.
學習目標
The case is suitable for undergraduate and postgraduate courses in mergers and acquisitions or for valuation units of either international or corporate finance courses. This case can also be used when discussing capital investments or project investments, particularly around expansions into new markets. The case asks students to determine the valuation of an asset by first determining the cost of capital and then undertaking a discounted cash flow analysis. Working through the case will give students the opportunity to do the following:<ul><li>Estimate and justify the costs and weights of various sources of financing to estimate the weighted average cost of capital. </li><li>Forecast and justify future cash flow assumptions. </li><li>Determine an appropriate value for Resort Frontier using discounted cash flow and comparable firm valuations.</li></ul>