Calaveras Vineyard

Calaveras Vineyards PROBLEM STATEMENT Senior Vice President, Anne Clemens of Golden-gate Capital, is contemplating an investment purpose for contribute a $4.5 million dollar line of credit to Calaveras. The constant growth in the wine market makes the bestow favorable reception more appealing however contend to pursue. In rewrite to decide whether to agree to the purpose 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 ready to de limitine Calaveras value, several methods can be used. However as a lender, we are concerned rough the debtors ability to fulfill their obligation on a loan once issued. In other haggling we need to go through what Calaveras is worth dead or alive. The adjacent analysis was considered: The p roposal NationsBank has proposed the following: 1) A revolving loan of up to $2.5million dollars; The genuine measuring 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 pecuniary statements analysis Data contained in the forecasted income statement indicates a c oncord decrease in gross sales revenue of 1! 2% in 1995 to 8% in 1998 consistent with an economic move in the direction of white wines. However, the companys significant sweating to improve its marketing strategy and projected case sales indicates increasing request for selected Calaveras wines. Furthermore, operating cash flow change with the introduction of more premium wines with increased prices. As a percent of sales revenue, retentions to...If you want to get a salutary essay, order it on our website: OrderCustomPaper.com

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