Calaveras Vineyard

Calaveras Vineyards PROBLEM STATEMENT Senior Vice President, Anne Clemens of Golden-gate Capital, is contemplating an investment aim for contribute a $4.5 million dollar line of credit entry to Calaveras. The constant growth in the wine market makes the add favorable reception more appealing however thought-provoking to pursue. In rewrite to decide whether to agree to the scheme 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 revisal to de bournine 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 hit the sack what Calaveras is worth dead or alive. The adjacent analysis was considered: The proposal NationsBank has proposed the following: 1) A revolving loan of up to $2.5million dollars; The genuine essence 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 bequeath be secured by land, plant and equipment. (PP&E is an estimated $2.3million if liquidated as of 1993) Forecasted financial statements analysis Data contained in the forecasted income statement indicates a booking decrease in gross sales revenue of 12% in 1995 to 8% in 1998 consistent with an economic move in the direction of white wines. However, the companys significant swither to improve its marketing strategy and projected case sales indicates increasing request for selected Calaveras wines. Furthermore, operating cash flow mend with the introduction of more premium wines with increased prices. As! a percent of sales revenue, retentions to...If you want to get a make up essay, order it on our website: OrderCustomPaper.com

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