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Martin Smith Case

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Introduction This report will critically analyse the Martin Smith: May 2002 case study focusing on the three investments opportunities. It will provide detailed analysis on the pros and cons of each of the investments and a recommendation will be proposed. When proposing the recommendation, the current situation of Newport Partners and Martin Smith, will be taken into consideration in order to explore the best possible transaction whilst eliminating as much risks. This report will also include a short summary of key points that were acquired while working on this assignment and whilst working in a group. Background on Case study Leveraged Buyouts refers to the takeover of a company predominantly financed by the issuance of debt usually in …show more content…

Newport are only able to acquire 40% stake upon paying $30 million which means the other shareholders may prove difficult for the private equity firm to implement their changes. As the price is attractive, Newport can expect to have competition from other bidders and may have to pay more than the initial price. Another risk is that the current CEO is strong-willed and does not work well with potential successors. Next, Rustica also presents risks such as the firm’s low capacity utilisation as well as the relative saturation of the market. Wildflower has the lowest risk compared to the other two as it is seen to be consistently growing, however it has a moderately lower level of financial strength compared to Rustica and Yellowstone Cattle Bank. As there are insufficient data and being that the three investments are from different industry, conducting an in depth financial ratio analysis will be difficult but nether less will still be done. Pilbeam ( 2010) mentions that financial ratios provide a useful summary of key financial data and enable a comparison to be made for the different …show more content…

It is mentioned that they ‘buy companies cheaply, leverage them heavily, live with the debt, and flip them to a market’ wanting to offer merges and acquisitions. (Hardymon, Lerner & Leamon, 2002) This is meant that since the offer price is the lowest Newport can get in and get out quickly and generate income as the company’s cash flow and potential growth is expected to increase in the years coming. The growth rate of the firm’s financial position of business provides a good rationale for leveraged

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There is a publication ban on the names of the accused [father & stepmother] to protect the identity of the boy [son] involved in this case. In the Ontario Provincial Court House in Ottawa, Robert Maranger sentenced the accused [father] to 18 years of imprisonment after Robert Maranger found the accused guilty of torturing his son. Upon sentencing, Robert Maranger made the following statement in court: “I find it extremely difficult to fathom the horrific crime you have committed against your own son. The accused [father] has been convicted of aggravated assault, forcible confinement, failure to provide necessities of life, aggravated sexual assault, and three counts of assault with a weapon.

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People v. Smith, 437 Mich 293, 470 NW2D 70, 78 (1991) addresses public policy conflicts and balance as it relates to the juvenile justice process (Elrod & Ryder, 2014). The issue presented in People v. Smith (1991) by the Supreme Court of Michigan is whether the inclusion in the presentence investigative report of an expunged juvenile record, in this case of defendant, Ricky Franklin Smith, requires, under MCR 5.913, presently MCR 5.925(E), that Smith be resentenced (People v. Smith, 1991). The issue involved was that Smith argued that he should be resentenced due to the inclusion of the pre-sentence investigative report of his previously expunged juvenile record. In People v. Smith (1991), it is stated that, “The purpose of the court rule,

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The case People v. Smith was finally decided by the Supreme Court of Michigan in 1991. The case involved the defendant Ricky Franklin Smith whom pled guilty to breaking and entering and of being a habitual offender, fourth offense (People v Smith, 1991). The judge sentenced Smith to 6 to 30 years imprisonment for the Habitual Offender charge. Ricky Franklin Smith after sentencing requested to be resentenced because his juvenile record, which had been expunged, was considered by the judge for sentencing. The Michigan Court of Appeals agreed with the sentencing; however, when the case went to the Supreme Court of Michigan, they reversed the decision because the sentencing should not have been based on the defendant’s prior expunged juvenile record.

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Scott Peterson was convicted of the murder of Laci Peterson and her unborn son, Conner Peterson. He has been on death row for over a decade as he tries to get his conviction appealed. Peterson and his family maintain his innocence, even participating in a docu-series titled, The Murder of Laci Peterson. This has caused quite a stir among viewers who now say they have doubts about his guilt. Could Scott Peterson been wrongfully imprisoned for so long because of circumstances he had no control over?

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The legal action before the court is a case that describes conflict with the People v. Smith concerning the laws that expunge a young offender’s juvenile criminal record. The defendant was charged with unlawful entry onto property and with being a repeat offender of offenses that are in violation and punishable by law. It was determined by the court that Smith is a habitual offender and he received a sentence of imprisonment. Point in fact is the defendant made a guilty plea to charges of breaking and entering and being a repeat offender by his own admission. Smith’s attorney stated the ruling was put in place to protect the people living in society and to be an example in order to discourage others from perpetrating the same kind of illegal or dishonest behavior.

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Overall, the increased debt is justifiable as they are producing a lot more, but it does hinder their liquidity and ability to take on more debt. In 2015 the company had a gross margin at 30.8% which was higher than the industry. This is a good indication that the

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One way or another, a team was finally put together early on Thursday evening at the team's home: The Institute and most, but not all of them, had gotten something for their joining the new team! 1 Dr. Stephen Smith had become a board-certified surgeon 4 years previously from London Medical School and while he had wanted to stay in London, he hadn't been able to get admitting privileges to any of the hospitals affiliated with London Medical School and thanks in big-part to Dr. John Peters. Peters had at least one very good reason for not wanting &/or allowing Smith to work in London: she was a blond, cuddly RN working in the OR and whom Smith had been seriously dating. So seriously that she actually could have become a Mrs. Smith but while she, Bella Taylor, did love Smith, she also really-loved London, ON and so when Smith was forced to go elsewhere for work, she stayed in London and in the end and almost 2 years out from when she had finally allowed Peters to get into her bed and to somewhat take her life over, she then suffered from Dr. John Peters bad ways and activities. But now and after Dr. Stephen Smith had accepted the job to be staff surgeon replacing the now dead Dr. Harris Anderson, instead of

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Introduction The main objective of this particular case study is to assist Victor Dubinski, the current CEO of Blaine Kitchenware, decide whether or not repurchasing shares and changing the firm’s capital structure in favor of more debt could actually be benefit the company and its shareholders. Blaine Kitchenware is a small cap, public company who focuses on selling various different residential kitchen appliances. Up until this point, the company has only used cash and equity financing to acquire independent kitchen appliance manufacturers, and expand into foreign markets abroad. Given their excess cash and lack of debt, Blaine Kitchenware is considered to be “over-liquid and under-leveraged” (Luehrman & Heilprin, 2009).

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This forces the acquirer company to raise its bid in order to stay competitive with the target’s offer and also increase the use of leverage in the target’s capital structure, which can make the target less attractive takeover candidate. d) Leverage Capitalization As part of this strategy, the target assumes a large amount of debt that is used to finance share repurchases. Like the share repurchases, the effect here is to create a significant change in the capital structure that makes the target less attractive while delivering value to the shareholders. e) Crown Jewel Defense After a hostile takeover, the target may decide to sell a subsidiary or major asset to a neutral third party. If the hostile acquirer view this asset as a essential to the deal, then it may decide to give up the takeover attempt.

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