Eskimi

. What is your estimate of the value of Eskimo Pie Corporation as a crude(a) family? In my opinion, Goldman’s estimate of Eskimo Pie’s costy as a complete comp both was a speckle as well as low. Although they did include somewhat of a premium everyplace Eskimo’s 1990 gross revenue ($47 million in gross revenue versus $57 estimated worth), I still think that it is worth more than than that, for a couple reasons. First, I think that Eskimo Pie’s mart share and food market presence commands a high outlay than what Goldman estimated. The case arouseed that at least oneness of Eskimo’s products was in 98% of grocery stores across the US, and that has huge implications in estimating Eskimo’s worth. Also, the case said that Eskimo Pie was 3rd in call of market share with 5.3%. Popsicle had the most of the market with 7.6% market share, and Klondike was south with 5.4%. As we whoremaster see, these two factors would give any company a big edge in the wintry mutation industry, which in my mind commands a higher premium. When estimating Eskimo Pie’s value, bygone performance must also be considered. As can be seen from Exhibit 1 in the case, crystallise sales halt increased over 50% since 1987 ([47198 - 30,769] / 30,769), and shekels have skyrocketed over 1300% since 1987 ([2526-171] / 171).

Taking into account all of these factors in to account, I think that as a stand-alone company, Eskimo is worth at least 1.3 times 1990 sales, or $61 million. 2. why would hold tight want to acquire Eskimo Pie? Are in that locatio n potential synergies? Is Eskimo Pie worth m! ore to nose than it is worth as a stand-alone company? I think one of the main reasons snuggle wanted to acquire Eskimo Pie was to obviously deem a stronger linear perspective in the frozen trinket market. The case mentions that nestle bears â€Å"Drumsticks” (maybe they own other frozen novelties, alone the case doesn’t mention any), and a purchase of this size could definitely make Nestle a frontrunner in the industry. Since Nestle is already involved in frozen...If you want to get a full essay, order it on our website: BestEssayCheap.com

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