Northampton Group Inc.: How to Increase Shareholder Value

內容大綱
The case examines the issues faced by a hotel management and development company as it tries to increase the return to its shareholders. The firm’s major shareholders have commented that they believe the firm is currently under-valued, so management is considering several means of unlocking extra value. Due to difficult economic conditions resulting from the global economic crisis, there are many opportunities as well as many risks to the alternatives the company is considering. The case provides the opportunity to use several different valuation methods to determine if the company is, in fact, undervalued. It also leads to a discussion of several alternatives for unlocking value, including starting an active acquisition strategy or re-organizing the corporate structure with either an updated capital structure or conversion to a real estate income trust.
學習目標
This case, at the intersection of corporate strategy and finance, provides an opportunity for students to perform a financial size-up to determine the health of a firm. It also gives an opportunity for the application of different valuation methods. Furthermore, students will learn about income trusts and the hospitality industry.
涵蓋主題
新增
新增