Fisher College of Business

Fisher College of Business

Department of Finance
Department of Finance

4219
Advanced Corporate Finance
Spring 2021

FINAL CASE ASSIGNMENT (GROUP) (100 POINTS)

Instructor
Instructor: Kennia Papadakis
Email address: [email protected] (preferred)
Phone number: 614-477-7304 (Mobile)

This is a group assignment – groups have been set on Canvas>People>Groups>Final Case

Groups. Please make sure to identify your teammates and coordinate / schedule team meetings
following the class schedule presented in the syllabus.

A team leader has been designated for each group. If you have been assigned this task and are
unable to fulfill your duties as team lead, please contact me as soon as possible to coordinate a re-
assignment.

In order to avoid any scheduling conflicts and to ensure that all teams have access to sufficient time
to meet, two class periods have been set-aside for the sole purpose of group work. During
this time I am available for office hours on Zoom, should any team need me. Following are the
class periods for dedicated to group work:

o Friday, April 16
o Monday, April 19

Virtual Office hours (on dates above, by appointment only). Please email to set up a time, and
use the Zoom meeting information provided at the end of this document. During the weekend prior to
the due date all questions are answered via email in a reasonably timely manner.

Case and Exhibits are available on Canvas Modules, Final Group Case.

4219_SP21_Papadakis _ Final Group Case 1

 Fisher College of Business
Department of Finance

Fisher College of Business

Department of Finance

Final Case: Burton Sensors, Inc.

Burton Sensors is a small, rapidly growing, and profitable temperature sensor original equipment
manufacturer (OEM) based in Forth Wayne, Indiana. The firm has reached its debt capacity (based
on current lender conditions) and seeks equity financing to sustain high growth. This comprehensive
business case allows Advanced Corporate Finance students to apply strategic and financial analysis
methods practiced during the semester.

Burton’s management is facing both capital investment for growth AND financing decisions.

1. The purchase new thermowell machines

2. To raise additional (equity) capital through a private placement
3. The acquisition of Electro-Engineering, Inc., a manufacturer of fiber-optic sensors

Amy Marshall, president of Burton Sensors, Inc. (Burton), met with the company’s financial
consultant to discuss the above issues, and has prepared information pertinent to their analysis and
valuation to ultimately decide how to move forward.

Your team’s role:

Your team is in charge of Strategic Planning & Corporate Finance group at Burton Sensors. You are
responsible for the analysis, valuation and ultimately documenting a final recommendation to Amy.
(Hint: imagine as if you are part of an internal consulting group that support Amy’s strategy and
capital planning process).

ANALYSIS QUESTIONS (60 PTS TOTAL)

1. Should Marshall continue to pursue a high-growth strategy? What is the potential effect of
growth on Burton’s stock price? (Hint: case exhibits 1 and 2 provide forecast of key accounts
that you can use to create a DCF for Burton, as if).
2. What are the Net Present Value and IRR of the thermowell machines investment? Should
Marshall purchase the thermowell machines? (In calculating the weighted-average cost of
capital, use 5.8% as the market risk premium.)
3. Should Marshall accept the offer of the private investor and issue new equity? How does the
deal affect Burton’s existing shareholders? What is the effect of the issuance on Burton’s
balance sheets?

4219_SP21_Papadakis _ Final Group Case 2

 Fisher College of Business
Department of Finance

Fisher College of Business

Department of Finance

4. Should Marshall acquire Electro-Engineering, Inc. (EE)? What is the most important
consideration (strategic intent)? What are the potential sources of synergies? Should Marshall
proceed with the deal?
5. Does the acquisition allow EE to gain enough funding to invest in the purchase of thermowell
machines?
6. What is your final recommendation to Amy Marshall?

TEAM PRESENTATION (20 PTS TOTAL)

Each team is designated a presentation topic within the six analysis questions above. Topics will be
published on Monday, April 19 via Canvas Announcements. A presentation template is posted on
Canvas Modules. Refer to the presentation schedule below to find your team presentation date.
Presentation time is 10 minute per team, and the power point file content must be adjusted
accordingly.

Section # / Class Time Presenting on Presenting on

Wednesday, April 21 Friday, April 23
4462 / 11:30 AM Teams #1 through #5 Teams #6 through #9

4587 / 12:40 PM Teams #1 through #4 Teams #5 through #8

4464 / 1:50 PM Teams #1 through #4 Teams #5 through #8

PEER EVALUATION (20 PTS TOTAL)

In order to enable an optimal learning experience for all students, a peer evaluation component has
been added to this final group case. Using the template provided on Modules, each student is
expected to provide candid and productive feedback for ALL team members of the group. For
example, in a group of five member, each student must provide feedback to four people.

How the peer evaluation is used in the rubric:

- The issuing student will receive 20 points solely by providing feedback to ALL teammates.
There is no partial point designation or late fees applied to this grading element. Failure to
provide feedback will result in loosing 20 points from the total 100 points of the group
assignment.
- The student on the receiving end of the evaluation will have his / her group score (Maximum
of 80 points) adjusted based on the feedback provided by his / her teammates. For example,

4219_SP21_Papadakis _ Final Group Case 3

 Fisher College of Business
Department of Finance

Fisher College of Business

Department of Finance

if the team is granted 100% of the 80 points possible, any underperforming team member will
be granted partial points following the scale managed by the instructor.

Deliverables, group drop box – three files:

1. Executive summary: ONE two-page word document, PDF or equivalent, summarizing

your analysis and recommendation. All quantitative exhibits should be clearly referenced on
this document. Include a cover page (additional page) with class time, team # and all team
member’s names.
2. Quantitative Analysis: ONE excel file with your quantitative analysis, clearly identifying
all tabs to be referenced in the memo.
3. Group Presentation: ONE power point file, using the template provided on Modules.
The content should be specific to address the designated topic, nothing more, and be
sufficient for a 10-minute presentation time slot, which includes Q&A.

Submit these three files via Canvas assignments on Wednesday, April 21 by 10 AM.
 Late assignments take a 25% penalty. An assignment is considered late when submitted
30 minutes after the due time.
 Only one teammate should drop off the file, which will count for the entire team.

Deliverables, individual drop box – one file:

1. Peer Evaluation: ONE file per student, template on Modules, containing peer evaluations for
all teammates. Deadline for submission is Friday, April 23 by midnight. Only on-time
delivery. Late assignment policy does not apply.

4219_SP21_Papadakis _ Final Group Case 4

 Fisher College of Business
Department of Finance

Fisher College of Business

Department of Finance

Zoom information for office hours

By appointment only. Please make sure to email me at [email protected] to secure a spot
before joining. Waiting room is enabled.

Join Zoom Meeting

https://osu.zoom.us/j/5658487619?pwd=QlBJdVJ3Nm9oRTYyVmNEZkNKZzVpQT09

Meeting ID: 565 848 7619

Password: BUSFIN4219
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4219_SP21_Papadakis _ Final Group Case 5