Essay Writing-Evaluate the analysis they have performed on the deal structure. What principles should guide the structuring of the deal used to raise equity?
In this case you are to analyze the financial projections. Write the case up as a consultant to owners.
1. Does the plan to purchase the hotel and turn it into a boutiques hotel represent an attractive opportunity from a financial point of view?
2. Evaluate the analysis they have performed on the deal structure. What principles should guide the structuring of the deal used to raise equity? What specific terms make the most sense? What should they propose?
3. What should they do about their specific ownership stakes and the issue Mr. D’Arcy has raised?
4. Should they proceed?
