In the following scenarios please provide a recommendation o…

Questions

In the fоllоwing scenаriоs pleаse provide а 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.

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