Please find the 'acquisition of business' for the 2 excel sheets below. (If you can,...
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Please find the 'acquisition of business' for the 2 excel sheets below. (If you can, can you please show how you did it. Thanks)
Project summary Acquisition of a portfolio of luxury resorts. Estimated investment: $36m Background: - Up until now, our divisional focus has been on hotels. We have a portfolio of hotels in major capital cities throughout Australia and South East Asia but we need to expand. I propose we diversify, both geographically and with our product offerings to include luxury resorts. Of course there will be synergies across the group, but with these proposed resorts, we will have entre into other parts of the globe and offer better services around corporate events, weddings etc. Resort 1 Philippines ($14.5 million AUD purchase price including start-up costs) - Resort 2 Brazil ($13.5 million AUD purchase price including start-up costs) - private island Resort 3 - Caribbean ($8 million AUD purchase price including start-up costs) E25 fi A B C G H K M N O P Home Page 0 1 2 3 4 5 6 8 9 10 2017 AUD '000 2018 AUD '000 2019 AUD '000 2020 AUD '000 2021 AUD '000 2022 AUD '000 2023 AUD '000 7 2024 AUD '000 2025 AUD '000 2026 AUD '000 2027 AUD '000 3,991 3,991 3,991 4,191 4,400 4,928 5,667 7,084 8,855 11,954 16,139 (1,118) (1,038) (2,156) 1,835 (1,207) (1,121) (2,328) 1,663 (1,304) (1,211) (2,515) 1,476 (1,356) (1,259) (2,615) 1,575 (1,410) (1,310) (2,720) 1,680 (1,467) (1,310) (2,776) 2,152 (1,526) (1,310) (2,835) 2,832 (1,526) (1,310) (2,836) 4,249 (1,526) (1,310) (2,836) 6,020 (1,526) (1,310) (2,836) 9,119 (1,526) (1,310) (2,836) 13,303 (411) (527) Acquisition of a fully integrated wine company in China 1 2 years after start of project 3 calendar year 4 rate 5 operations 6 sales revenue 7 cost of goods sold (COGS) 8 cost of vineyard operations 9 winemaking and bottling 10 Total COGS 11 gross profit 12 operating costs 13 utilities 14 marketing, sales and administration 15 depreciation & amortisation 16 other (cash expenditure) 17 total operating costs 18 19 operating profit 20 income tax 30% 21 profit after tax 22 add depreciation 23 after tax cash flows from operating activities 24 investments 25 acquisition of business 26 property plant & equipment 27 other investments 28 termination 29 net cash flow from investing activities 30 31 relevant cash flow from operating activities 32 relevant cash flows from investing activities 33 relevant net cash flow (IRR) #NUM! (399) (479) (599) (67) (1,544) (650) (105) (1,693) (423) (580) (650) (105) (1,758) (436) (638) (650) (140) (1,864) (449) (701) (650) (140) (1,940) (463) (806) (650) (145) (2,064) (476) (927) (650) (145) (2,199) (505) (1,067) (650) (180) (2,402) (535) (1,227) (650) (180) (2,592) (578) (1,472) (650) (220) (2,920) (624) (1,766) (650) (220) (3,261) 291 (87) 204 599 803 (30) 0 (30) 650 620 (282) 0 (282) 650 368 (288) 0 (288) 650 362 (260) 0 (260) 650 390 88 (26) 61 650 711 633 (190) 443 650 1,093 1,847 (554) 1,293 650 1,943 3,428 (1,028) 2,399 650 3,049 6,199 (1,860) 4,339 650 10,042 (3,013) 7,030 650 7,680 4,989 xL 0 0 0 0 0 0 0 0 0 0 0 79,818 79,818 0 0 0 0 0 0 0 0 0 620 368 362 390 711 1,093 4,989 1,943 0 3,049 0 0 0 0 0 0 0 0 0 7,680 79,818 87,498 0 620 368 362 390 711 1,093 1,943 3,049 4,989 Project summary Acquisition of a fully integrated wine business based in China. Estimated investment: $35m - Current performance issues: - Vineyard yields are below industry standard impacting costs and grape availability. Achieving improvements will require some additional early expenditure. Distribution network throughout China lacks integration and cohesiveness with contracts with many different logistics organisations. This has added costs and restricted the capacity to meet customers' needs. While the protocols of winemaking are considered to be around the industry standard, there is a view that there are still operational improvements to be made, particularly for a winery focused on a high-end strategy. This will require some additional expenditure at the outset. - Issues for consideration The location we are looking at has experienced harsh climate conditions and some issues with access to sufficient water; though these are thought to be manageable over the longer term. - There are some concerns about the need to further develop the employees at the vineyards and winery processing plant to drive planned improvements. Project summary Acquisition of a portfolio of luxury resorts. Estimated investment: $36m Background: - Up until now, our divisional focus has been on hotels. We have a portfolio of hotels in major capital cities throughout Australia and South East Asia but we need to expand. I propose we diversify, both geographically and with our product offerings to include luxury resorts. Of course there will be synergies across the group, but with these proposed resorts, we will have entre into other parts of the globe and offer better services around corporate events, weddings etc. Resort 1 Philippines ($14.5 million AUD purchase price including start-up costs) - Resort 2 Brazil ($13.5 million AUD purchase price including start-up costs) - private island Resort 3 - Caribbean ($8 million AUD purchase price including start-up costs) E25 fi A B C G H K M N O P Home Page 0 1 2 3 4 5 6 8 9 10 2017 AUD '000 2018 AUD '000 2019 AUD '000 2020 AUD '000 2021 AUD '000 2022 AUD '000 2023 AUD '000 7 2024 AUD '000 2025 AUD '000 2026 AUD '000 2027 AUD '000 3,991 3,991 3,991 4,191 4,400 4,928 5,667 7,084 8,855 11,954 16,139 (1,118) (1,038) (2,156) 1,835 (1,207) (1,121) (2,328) 1,663 (1,304) (1,211) (2,515) 1,476 (1,356) (1,259) (2,615) 1,575 (1,410) (1,310) (2,720) 1,680 (1,467) (1,310) (2,776) 2,152 (1,526) (1,310) (2,835) 2,832 (1,526) (1,310) (2,836) 4,249 (1,526) (1,310) (2,836) 6,020 (1,526) (1,310) (2,836) 9,119 (1,526) (1,310) (2,836) 13,303 (411) (527) Acquisition of a fully integrated wine company in China 1 2 years after start of project 3 calendar year 4 rate 5 operations 6 sales revenue 7 cost of goods sold (COGS) 8 cost of vineyard operations 9 winemaking and bottling 10 Total COGS 11 gross profit 12 operating costs 13 utilities 14 marketing, sales and administration 15 depreciation & amortisation 16 other (cash expenditure) 17 total operating costs 18 19 operating profit 20 income tax 30% 21 profit after tax 22 add depreciation 23 after tax cash flows from operating activities 24 investments 25 acquisition of business 26 property plant & equipment 27 other investments 28 termination 29 net cash flow from investing activities 30 31 relevant cash flow from operating activities 32 relevant cash flows from investing activities 33 relevant net cash flow (IRR) #NUM! (399) (479) (599) (67) (1,544) (650) (105) (1,693) (423) (580) (650) (105) (1,758) (436) (638) (650) (140) (1,864) (449) (701) (650) (140) (1,940) (463) (806) (650) (145) (2,064) (476) (927) (650) (145) (2,199) (505) (1,067) (650) (180) (2,402) (535) (1,227) (650) (180) (2,592) (578) (1,472) (650) (220) (2,920) (624) (1,766) (650) (220) (3,261) 291 (87) 204 599 803 (30) 0 (30) 650 620 (282) 0 (282) 650 368 (288) 0 (288) 650 362 (260) 0 (260) 650 390 88 (26) 61 650 711 633 (190) 443 650 1,093 1,847 (554) 1,293 650 1,943 3,428 (1,028) 2,399 650 3,049 6,199 (1,860) 4,339 650 10,042 (3,013) 7,030 650 7,680 4,989 xL 0 0 0 0 0 0 0 0 0 0 0 79,818 79,818 0 0 0 0 0 0 0 0 0 620 368 362 390 711 1,093 4,989 1,943 0 3,049 0 0 0 0 0 0 0 0 0 7,680 79,818 87,498 0 620 368 362 390 711 1,093 1,943 3,049 4,989 Project summary Acquisition of a fully integrated wine business based in China. Estimated investment: $35m - Current performance issues: - Vineyard yields are below industry standard impacting costs and grape availability. Achieving improvements will require some additional early expenditure. Distribution network throughout China lacks integration and cohesiveness with contracts with many different logistics organisations. This has added costs and restricted the capacity to meet customers' needs. While the protocols of winemaking are considered to be around the industry standard, there is a view that there are still operational improvements to be made, particularly for a winery focused on a high-end strategy. This will require some additional expenditure at the outset. - Issues for consideration The location we are looking at has experienced harsh climate conditions and some issues with access to sufficient water; though these are thought to be manageable over the longer term. - There are some concerns about the need to further develop the employees at the vineyards and winery processing plant to drive planned improvements
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