Calaveras Vineyard

Calaveras Vineyards PROBLEM STATEMENT Senior Vice President, Anne Clemens of Golden-gate Capital, is contemplating an investment marriage proposal for contribute a $4.5 million dollar line of cite to Calaveras. The constant growth in the wine market makes the give favorable reception more appealing however contest to pursue. In rewrite to decide whether to agree to the proposal or not, Clemens needs to coiffe the estimated worth of Calaveras Vineyards. ANALYSIS Calaveras Vineyards is located in Alameda Valley, California and was established in 1883. Despite the many changes in ownership Calaveras continues to grow in gross revenue. In recount to de boundine Calaveras value, several methods can be used. However as a lender, we are concerned rough the debtors ability to fulfill their obligation on a give once issued. In other haggling we need to come what Calaveras is worth dead or alive. The adjacent analysis was considered: T he proposal NationsBank has proposed the following: 1) A revolving loan of up to $2.5million dollars; The genuine amount of money permitted to be outstanding is approximately $1.

1million, and this is being secured by 85% of receivables and 75% of inventories which as an approximate value of $2million 2) A term loan of $2million to be amortized equally over pentad years, this volition be secured by land, plant and equipment. (PP&E is an estimated $2.3million if liquidated as of 1993) Forecasted monetary statements analysis Data contained in the forecasted income statement indica tes a support decrease in sales revenue o! f 12% in 1995 to 8% in 1998 consistent with an economic move in the direction of white wines. However, the companys significant sweat to improve its marketing strategy and projected case sales indicates increasing request for selected Calaveras wines. Furthermore, operating cash flow rectify with the introduction of more premium wines with increased prices. As a percent of sales revenue, retentions to...If you want to get a full essay, order it on our website: OrderCustomPaper.com

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