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Grant Lewis, a Chartered Accountant (CA) and senior manager at a Big Six professional services firm, was investigating the feasibility of establishing a CA firm with two former colleagues. Mr. Lewis recognized the need for external financing during the start-up phase of the business. In preparation for a meeting with his bank manager, Mr. Lewis has been asked to prepare a projected monthly cash flow statement as well as a balance sheet and income statement for the first year of operations. The primary objective of the case is to get students to develop these financial statements and appreciate the links and differences between a cash flow and an income statement. The case also allows students to examine the bank lending process, discuss the merits and drawbacks of starting a small business, and become familiar with some of the basic components and sources of relevant market information for a new venture.

Canada-based Oxford Learning Centres (OLC) entered into a licensing agreement with U.S.-based Childtime Learning Centers (Childtime) where Childtime would operate OLC supplemental education programs in their facilities. In less than six months, Childtime decided to make an offer to purchase OLC. OLC's CEO must decide how to approach the impending negotiations. The case describes the North American supplement education industry, valuation considerations and private firm purchase negotiations. Detailed comparables are provided for such firms as Sylvan Learning Systems and Corporate Family Solutions. The case provides an opportunity to apply a number of valuation techniques including discounted cash flow, and multiples based on comparable firms and transactions.

Canada's largest privately owned department store, The T. Eaton Company Limited, founded in 1869, had recently emerged from bankruptcy protection and was now planning to raise $175 million through an initial public offering (IPO). Investment bankers must determine the appropriate share price and consider the appropriateness of the timing for the issue. The case describes North American retail industry trends and the bankruptcy protection process, and provides a detailed discussion of the IPO process and valuation considerations. Detailed comparables are provided for such firms as Federated, Nordstrom's and Dillard. The case provides an opportunity to apply a number of valuation techniques including discounted cash flow, price-to-earnings multiples and enterprise value-to-EBITDA multiples.