Finance Case Study – Kohler Co. (A)

  

Create a excel sheet can answer following questions. Assume you are an independent appraiser.2. Prepare a Standard Valuation of Kohler (I have uploaded some financials)Comparable CompaniesDCF*3. How do you work with an exit strategy? What is the company worth if the Terminal Value is a perpetuity at the sales growth rate? In a closely held company that wants to remain private, does it make sense to use a comparable company multiple?4. Can you back into the valuation presented by the plaintiffs and by Kohler? What kind of discounts are used? What terminal value?5. Do discounts for lack of control and/or liquidity apply valuations based on DCF? Comparable company valuations?Please assume the following: Calculate WACC based on comparable companies. Assume that the first year of projections is 1999 and then add your best estimate for 2003 for a 5 year DCF. In the later years of the projections, the cash account seems to jump and there may be some excess cash which you would not want to include in the Change in NWC. Assume Kohler interest rate on debt is 7% pre tax Assume change in NWC in 1999 is 1.1%