Featured Projects

QUALCOMM - Students estimated the aggregate company valuation of the company and compared it with their estimates of the values of its distinct operating segments. Based upon the difference between the implied valuation and the stock market valuation of the company, further analysis was conducted to assess the source/s of the deviation between results obtained from relative and absolute valuation methodologies. Specific recommendations were provided to enhance market valuation and implied valuation.

Medtronic- Students evaluated the operating and financial characteristics of major competitor companies within the medical device and pharmaceutical industries as part of a benchmarking exercise for assessing Medtronic’s performance across a number of different metrics. In addition, the students examined internal financial and operational reporting practices for one of Medtronic’s business units, and provided recommendations regarding key reporting variables.

ioGenetics - Students provided a comprehensive comparative analysis of alternative funding sources and opportunities in the venture capital and strategic alliance markets for the start-up biotechnology company, ioGenetics. Specific recommendations were provided for capital availability, covenants and other operating and financing restrictions contained in the funding arrangements, and ownership and governance implications for each source.

Kraft - Kraft asked ACFIN to identify and recommend a specific M&A process that would allow Kraft to become a more significant player in the frozen food aisle. There were two key objectives for the final project presentation. First, Kraft wanted the ACFIN students to identify an acquisition/licensing process that would help Kraft identify promising target acquisition candidates. This step included recommendations on available research tools to maximize target identification and valuation analysis, a structure for the Kraft M&A department that would optimize speed and results, and identification of performance metrics that should be focused on to identify potential acquisitions and/or licensing/partnering opportunities.

Second, utilizing the process identified above, the ACFIN team was asked to recommend a strategy that Kraft could use to expand its presence in warehouse frozen food. As the largest North American food company, Kraft felt that it needed to become a larger player in this arena (frozen represents 14% of all food sold and growing faster than other areas of the store).

The team identified companies that would allow Kraft to take an important step into this area, focusing in particular on products handled by a warehouse distribution system. The students provided Kraft with a list if potential targets and identified why they recommended their identified strategy and the companies
they believe would support execution of this strategy, focusing specifically on important success attributes such as growth opportunities, synergies, cultural fit, competitive advantages.
 

Procter & Gamble - The Corporate Analysis & Strategy Group at Procter & Gamble contacted ACFIN to solicit an outside perspective and viewpoint on the calculation of its cost of capital, as well as the use of cost of capital in business decision making. This project was especially challenging because P&G operates in a number of diverse business segments and has operations in over 170 countries around the world.

The ACFIN students considered the calculation from both a line of business and a geographic market location perspective. From a line of business perspective, the students had to determine whether different units should use different costs of capital and, if so, how to assign capital costs based on different business unit classifications. From a geographic perspective, the ACFIN students then determined whether the cost of capital for P&G’s business unit projects located overseas should be charged a higher cost of capital due to higher levels of risk.

The outcome of the analysis was to provide specific recommendations for six distinct business units in three distinct geographic segments (domestic markets, international developed markets, and international emerging markets).