For this question you are to take on the role of a junior associate in a professional valuation firm. Your firm has just agreed to complete a valuation analysis for a new client, Arnott Industries, located in Merritt Island, FL.
One of the senior partners in the firm has asked you to provide a summary description of the company, complete an industry analysis, and identify the players, competitors, comparable firms, and guideline companies.
Your summary of the client's business should not include simply copying pages from the firm's web site or including them in your submission. You are to provide a coherent written summary of the company. (Do not contact the new client.)
The structural analysis of the industry should include a thorough review. How large is the industry in terms of sales, number of firms, etc.? Is it regional, national, or international? What SIC and NAICS classifications best fit Arnott Industries?
Complete the Porter's five forces analysis. What are the competitive forces driving the industry? What is your assessment of each of the five competitive forces? Provide a thorough competitive analysis of the competitors or comparable firms in the industry. How do they compete?
What insight can you provide on the generic strategies companies within the industry are using? What changes are occurring within the industry? What are the profit drivers for this industry? How is the client firm positioned within the industry?
You memo should include:
- A good summary of the industry and lengthy list of the players within the industry.
- Then narrow down the list of players to competitors and an explanation on how you believe they are competing? (You may want to include attachments with a list of the players and competitors, if it is a lengthy list.)
- A list of potentially comparable firms.
- Porter's Five Forces
Provide additional information that will enhance your analysis and project submission; Strategic Map, SWOT analysis, etc.