100% Original, Plagiarism Free, Tailored to your instructions

Order Now!

On the 31st July 2013, Aerlingus wrote to shareholders outlining its reasons for recommending that shareholders reject Ryanair offer to purchase the company. The offer valued Aer Lingus at 694 euro million.

On the 31st July 2013, Aerlingus wrote to shareholders outlining its reasons for recommending that shareholders reject Ryanair offer to purchase the company. The offer valued Aer Lingus at 694 euro million.
On the 31st July 2013, Aer Lingus Group plc, an Irish airline, wrote to shareholders outlining its reasons for recommending that shareholders reject Ryanair Holdings plc’s offer to purchase the company.  The offer valued Aer Lingus Group plc at €694 million (£561 million).
The board of directors of Aer Lingus Group plcwere unanimous in the view that Ryanair’s offer fundamentally undervalued the company.
Ryanair already owns a 29.82% stake in Aer Lingus Group plc, which was built up during two previous unsuccessful attempts to buy the airline in 2006 and 2008.
Ryanair’s offer is to be investigated by the European Commission over competition worries.
The requirements of the report are detailed as follows:
In your role as Finance Director of Aer Lingus Group plc, fellow board members have asked youto produce a report to assist the company in its defence of the hostile bid from Ryanair Holdings plc.
Valuation Model (20 marks)
1.    Produce a company valuation using a free cash flow valuation model.  The model should incorporate estimates of the following;
(i)    Return on invested capital (ROIC)
(ii)    Cost of capital
(iii)    Horizon or competitive advantage period
(iv)    Expected future cash flow
(v)    Growth in future cash flow
(vi)    Reinvestment required
This section of the report should be included as an Appendix to the written element of the report.  Students may wish to use Excel to produce the model.
The written element of the report should contain three distinct sections.
Section A (20 marks)
In your role as Finance Director;
(a)    You will comment on the valuation you have produced, relative to the value of the hostile bid, and;
(b)    You will be expected to fully justify the estimates used in your model with regard to the following key elements;
(i)    The horizon period chosen
(ii)    The difference (spread) between ROIC and the Cost of Capital both during and after the horizon period
(iii)    The expected future growth
Section B (30 marks)
In your role as Finance Director, you will be required to justify the choice of valuation model employed (e.g. free cash flow valuation model), relative to any other potential valuation methods available.  Justification should be made with reference to relevant theoretical literature.
Section C (30 marks)
In your role as Finance Director;
(a)    You will be required to justify the choice of model used to estimate the Cost of Capital (CAPM) and;
(b)    You will be required to justify the estimates used in respect of;
(i)    the risk free rate
(ii)    the risk premium
(iii)    Beta
Issues surrounding the model (CAPM) and the difficulties in estimating inputs to the model should be fully explored withreference to relevant theoretical literature.
Specific requirements
Students will be required to base any figures or estimates used on Aer Lingus Group plc.
Students should assume, for the purposes of the assignment, that Aer Lingus Groupplc is all equity financed.
When constructing the valuation model students should carry out some sensitivity analysis to assess the impact that any changes in estimates will have on their valuation.  Evidence of sensitivity analysis should be included in the form of additional valuation models included as appendices.
Students may wish to structure the report as follows:
Section A – 300 words (25% of total word count)
Section B & C – 1000 words (75% of total word count)

Our Service Charter

  1. Excellent Quality / 100% Plagiarism-Free

    We employ a number of measures to ensure top quality essays. The papers go through a system of quality control prior to delivery. We run plagiarism checks on each paper to ensure that they will be 100% plagiarism-free. So, only clean copies hit customers’ emails. We also never resell the papers completed by our writers. So, once it is checked using a plagiarism checker, the paper will be unique. Speaking of the academic writing standards, we will stick to the assignment brief given by the customer and assign the perfect writer. By saying “the perfect writer” we mean the one having an academic degree in the customer’s study field and positive feedback from other customers.
  2. Free Revisions

    We keep the quality bar of all papers high. But in case you need some extra brilliance to the paper, here’s what to do. First of all, you can choose a top writer. It means that we will assign an expert with a degree in your subject. And secondly, you can rely on our editing services. Our editors will revise your papers, checking whether or not they comply with high standards of academic writing. In addition, editing entails adjusting content if it’s off the topic, adding more sources, refining the language style, and making sure the referencing style is followed.
  3. Confidentiality / 100% No Disclosure

    We make sure that clients’ personal data remains confidential and is not exploited for any purposes beyond those related to our services. We only ask you to provide us with the information that is required to produce the paper according to your writing needs. Please note that the payment info is protected as well. Feel free to refer to the support team for more information about our payment methods. The fact that you used our service is kept secret due to the advanced security standards. So, you can be sure that no one will find out that you got a paper from our writing service.
  4. Money Back Guarantee

    If the writer doesn’t address all the questions on your assignment brief or the delivered paper appears to be off the topic, you can ask for a refund. Or, if it is applicable, you can opt in for free revision within 14-30 days, depending on your paper’s length. The revision or refund request should be sent within 14 days after delivery. The customer gets 100% money-back in case they haven't downloaded the paper. All approved refunds will be returned to the customer’s credit card or Bonus Balance in a form of store credit. Take a note that we will send an extra compensation if the customers goes with a store credit.
  5. 24/7 Customer Support

    We have a support team working 24/7 ready to give your issue concerning the order their immediate attention. If you have any questions about the ordering process, communication with the writer, payment options, feel free to join live chat. Be sure to get a fast response. They can also give you the exact price quote, taking into account the timing, desired academic level of the paper, and the number of pages.

Excellent Quality
Zero Plagiarism
Expert Writers

Instant Quote

Single spaced
approx 275 words per page
Urgency (Less urgent, less costly):
Total Cost: NaN

Get 10% Off on your 1st order!