Standup Corporation
Company Description
Five year old Hawaii based manufacturer and marketer of Standup surfboards.
All of Standup's sales are currently in the United States.
Best reputation in the industry with top shapers and efficient manufacturing processes.
Standup surfing industry is experiencing 20-30% growth worldwide.
Standup Corp equity is 100% owned by one founder.
To become a global player, Standup Corp is looking to raise significant capital (debt or equity) over the next few years.
Standup's founder has hired you as an advisor for raising additional capital from VC funds and banks.
Assignment (For calculations, assume it is now the beginning of 2018)
1) Determine pro-forma financials for years 2018-22. Set your own optimal Capital Raising and Dividend policies.
2) Derive comparable (comp) valuation metrics (P/E, EV/Sales) and financial metrics (Margins, Leverage) for Standup.
3) Provide the 2 equity valuations methods you feel are most appropriate (e.g. P/E, DFCF, EV/EBITDA, EV/Sales, Future IPO)
4) Conduct a sensitivity analysis on your growth assumptions.
5) Write a consulting report (Max 350 words) to Standup founders including:
a) Recommend if the founders should move ahead with this business opportunity and why? Growth drivers, market size, profit potential, etc.
b) What is your final valuation for Standup's equity and briefly explain your valuation method.
c) Based on your valuation, how much of Standup's ownership (equity) will you need to sell in order to fund AFN?
d) Recommendations on future Financial Policy (Capital Raising, Dividends, working capital, etc).
6) Complete this assignment in your Groups: The hardcopy must be turned in on March 23th (Friday) at the beginning of class.
7) Any spreadsheets and charts that you would like the founder (i.e. me) to see should be included with hardcopy writeup.
Attachment:- Standup Corporation.rar