In the following scenarios please provide a recommendation o…

In the following scenarios please provide a recommendation on the most appropriate report, and if applicable, the level of report with supporting case facts.  (3 marks each)  Scenario 1 Nick has been running an automotive repairs shop next to a busy street for the past 10 years. The provincial government has received approval to invest in a new subway system in order to meet the explosive population growth. Construction began at the end of 2023. Consequently, a large portion of Nick’s store has been blocked by construction equipment and revenues dropped by 95%. Nick has engaged a lawyer and would like to sue the government for this disruption. Scenario 2 After a long litigious battle spanning over two years, the two shareholders of CanRock Inc. have still not reached a settlement as to how much their ownership interests are worth. Each shareholder holds 50% of the company. This morning, one of the shareholders dropped by your office to ask if you can take a look at a valuation report that was prepared by another professional. As one shareholder intends to buy out the other, he wants to see if the other report was overly aggressive in their multiples. Scenario 3 Pocco Funds Inc. (“Pocco”) has approximately $500 million of assets under management (“AUM”). Pocco primarily invests their clients’ money in mutual funds and moderate risk technology ETFs. Pocco’s CFO has recently valued Pocco’s net asset value (“NAV”) at $800 million. Pocco’s board has asked you to take a look at the CFO’s assessment and advise if this $300 million increase makes sense. Scenario 4 Buffit Inc. (“Buffit”)  is a bufffet restauarant and recently received an offer from a national chain to be acquired for $1.5 million. The board members, consisting of Buffit’s three shareholders, want to know whether they should accept the offer or not. Scenario 5 Your best friend Tom owns and operates an arts and crafts store and was recently approached by Michaels Crafts Inc. While a price has not been mentioned yet, Tom wants to be in a strategic position to negotiate for the highest price. Tom, however, has mentioned he does not want to pay too much to have you analyze the company if the transaction doesn’t go through.

Mr. Green is the owner of EcoDecking, a company that has bee…

Mr. Green is the owner of EcoDecking, a company that has been successful in developing a synthetic decking material manufactured from recycled products. Mr. Green has developed this product and promoted it in his area of Atlantic Canada for the past 6 years. The product has been well received by customers and has stood up well to the environmental challenges of the area.  Mr. Green is 72 years old and while he enjoys his work, he does not feel that he can grow the company to its full potential. He would like to sell but is concerned that while the company is profitable, the upside to his company is huge based on the development and initial market acceptance and he is hoping that he is able to capitalize on some of this through the sale. He has heard that there are potential purchasers that may be willing to pay amounts more than the value indicated by the volume of current operations but doesn’t really  understand why this would happen. Required: a) Explain the concept of special purchasers and what this premium is a function of. Give examples of possible synergies that could apply to this business. (7 marks) b) Advise Mr. Green whether a special purchaser premium may apply to his business and suggest who you would investigate as potential special interest purchasers for this business. What sources of information would help you quantify this potential benefit. (3 marks)