Monmouth, Inc - 3506 Words

For the exclusive use of P. ISLAS GARCIA 4226 JULY 31, 2010 THOMAS R. PIPER HEIDE ABELLI Monmouth, Inc. Harry Vincent, executive vice president of Monmouth, Inc., was reviewing acquisition candidates for his company’s diversification program. One of the companies, Robertson Tool Company, had been approached by Monmouth three years earlier but had rejected all overtures. Now, however, Robertson was in the middle of a takeover fight that might provide Monmouth with a chance to gain control. Monmouth, Inc. Monmouth was a leading producer of engines and massive compressors used to force natural gas through pipelines and oil out of wells. Management was concerned, however, over its heavy dependence on sales to the oil and†¦show more content†¦Their goal was to build, through acquisition, a hand tool company with a full product line that would use a common sales and distribution system and joint advertising. To do this they needed Monmouth’s financial strength. Dessex provided a solid base to which two other companies were added. In 2000 the Keane Corporation was acquired. The company had been highly profitable but suffered in recent years under the mismanagement of some investor-entrepreneurs. A series of acquisitions of weak companies with poor product lines eroded Keane’s overall profitability. Discouraged, the investors wanted to exit their ownership position, and Monmouth—eager to add Keane’s well-known and high-quality measuring and fastening tools to its line—was interested in the opportunity. It was clear that some of Keane’s lines would have to be dropped and inefficient plants would have to be closed, but the rules, ratchets, and wrenches would play an important part in Monmouth’s product strategy. Monmouth further expanded into hand tools with the acquisition of the Kroll Electric Corporation. Kroll was the world’s leading supplier of soldering tools to the industrial, electronic, and consumer markets. It provided Monmouth with a new, high-quality product line and production capacity in England, Germany, and Mexico. Monmouth was less successful in its approach to a fourth company in the hand tool business—the Robertson ToolShow MoreRelated King Arthur Essay1157 Words   |  5 Pages GRAPH Arthurian literature can be divided into two basic categories, pseudo-histories and romances. The main difference between the two is that pseudo-histories such as Wace and much of the Celtic work, for example, Geoffrey of Monmouth show Arthur as a strong, central character, making him the dominant figure in the story. He is the one who goes on quests and battles, gaining respect and glory for his court. In romances, however, Arthur is most often overshadowed by his knightsRead MoreInternational Marketing Of A Us Company1078 Words   |  5 Pages International Marketing of a US Company: Apple, Inc. Nick Gildea, Susie Kim, Courtney Kurkemelis, Lexie LaSala 12 February 2015 Professor Min Lu Monmouth University â€Æ' Table of Contents Executive Summary†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦.†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ 3 Apple, Inc. Goes International†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦4 Advertisement Promotion†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦5 Distribution†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦. Pricing†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦...†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦ Success†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..†¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦Ã¢â‚¬ ¦..Read MoreMonmouth Case Solution678 Words   |  3 PagesMonmouth Case solution 1. To escape their dependency on a single industry, Monmouth managed to reduce their business risk by acquiring small different industrial manufacturers in addition to becoming a market player in the hand tool business, by acquiring 3 of the market leaders, a move that diversified Monmouth’s business and ultimately reduced their business risk. In analyzing the financial risk, the continuous acquisitions have definitely increased the operational risk for the company. SinceRead MoreCase questions Essay1051 Words   |  5 Pagesï » ¿Principles of Corporate Finance Comprehensive Case Questions Tire City, Inc. 1. Evaluate Tire City’s financial health. How well is the company performing? 2. Based on Mr. Martin’s prediction for 1996 sales of $28,206,000, and for 1997 sales of $33,847,000 and relying on the other assumptions provided in the Tire City case, prepare complete pro forma forecasts of TCI’s 1996 and 1997 income statements and year-end balance sheets. As a preliminary assumption, assume any new financing required willRead MoreRobertson Tools Company1058 Words   |  5 PagesRobertson Tools Company value analysis Monmouth Inc. is a leading producer of engines and massive compressors used to force natural gas through pipelines and oil out of wells. It is has dependence on sales to the oil and gas industries, the earnings of which is fluctuated owing to cyclical nature of heavy machinery and equipment sales. Anyway, the company’s amount of earnings growth and sales are above average in long-term view. From the last three acquisitions the company adhered to only leadingRead MoreMonmouth Report1385 Words   |  6 PagesEXECUTIVE SUMMARY This report will analyze the price Monmouth should pay to acquire RTC by using DCF, market multiple, and stock exchange approaches. Rationales on why RTC is a good acquisition by Monmouth RTC is a good acquisition by Monmouth as it falls under their three established criteria for all acquisitions, and also because the future potential profits, growth opportunities and synergies from this acquisition is likely to be greater than the cost of this merger. Sources of synergy gains Read MoreCorporate Finance Essay examples4203 Words   |  17 PagesMonmouth, Inc. Questions 1. Is Robertson an attractive acquisition for Monmouth? (MON) 2. What is the maximum price that MON can afford to pay based on a discounted cash flow (DCF) valuation? What would be the maximum price per share? †¢ Estimate the WACC †¢ Credibility of the forecasts developed by Vincent and Rudd? †¢ Estimation of the terminal value. †¢ What determines whether sales growth is value-creating versus destructive of value? 3. What is the maximum price based on market multiplesRead MoreStock and Long Term Trend1513 Words   |  7 PagesTeam 1 Monmouth Case 1. Is Robertson a good candidate for Monmouth (assuming the price is right)? Why? Yes. Robertson Tool Company had been going through a few years of low sales and profit, and, coupled with conservative financial and accounting practices, was far behind the normal growth rate for companies in its industry. Robertson’s 50% control of the market for clamps and vises, along with its good position in the scissors and shears’ $200 million market, let it compliment the diverseRead MoreMonmouth Case Study1592 Words   |  7 PagesMonmouth, Inc. - Case Study - Strategy 1) Describe briefly Robertson’s business and the key factors to succeed in it. How well is Robertson doing from an operational standpoint? What KPIs should one consider? Robertson is one of the largest domestic manufacturers of cutting amp; edge hand tools and a leader in its two main product areas: * Clamps and vises: the company holds a 50% share of a market estimated at $75-million, with a reputation for high-quality and a very strong brand name Read MoreMonmouth Case Study1581 Words   |  7 PagesMonmouth, Inc. - Case Study - Strategy 1) Describe briefly Robertson’s business and the key factors to succeed in it. How well is Robertson doing from an operational standpoint? What KPIs should one consider? Robertson is one of the largest domestic manufacturers of cutting amp; edge hand tools and a leader in its two main product areas: * Clamps and vises: the company holds a 50% share of a market estimated at $75-million, with a reputation for high-quality and a very strong brand name