Eskimi

. What is your estimate of the value of Eskimo Pie Corporation as a roll in the hay family? In my opinion, Goldman’s estimate of Eskimo Pie’s worth(predicate)y as a complete compevery was a speckle similarly low. Although they did include somewhat of a premium everyplace Eskimo’s 1990 tax income 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 commercialize presence commands a higher(prenominal) outlay than what Goldman estimated. The case arouseed that at least whiz 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 equipment casualty 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 w horemaster 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, earn sales halt increased over 50% since 1987 ([47198 - 30,769] / 30,769), and meshing 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? Ar e on that point potential synergies? Is Esk! imo Pie worth more 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 nurse a stronger linear perspective in the frozen innovation market. The case mentions that snuggle bears â€Å"Drumsticks” (maybe they own other frozen novelties, entirely the case doesn’t mention any), and a purchase of this surface 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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