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Business Finance and Quantitative Methods - Assignment

   

Added on  2020-03-28

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Business finance and quantitative methods 1FINANCE AND QUANTITATIVE METHODSBy NameCourse TitleInstructor’s nameName of InstitutionName of Department

Business finance and quantitative methods 2Dick Smith Holdings CompanyIntroductionThis particular report attempts to provide a summary of ownership history of Dick Smith Brand. This report also provides a critical assessment of the firm evaluation when it was purchased by Anchorage Capital Partners and at its Initial Public Offer (IPO) and also an evaluation of the critical impasse that faces the two separate set of people. Senior managers of Dick Smith Brand with regard to statements made in the FY2014/15 accounts and Anchorage Capital Partners as regards the floatation of the business. Dick Smith Holdings Company was until 2016 an Australia broad-chain of wholesale shops that basically sold userelectronic products, hobbyist electronic constituents and electrical projects kits (Bryman, and Bell, 2015). The company grew productively into New Zealand and ineffectively into other nations. The business was established by Dick Smith in 1968 and located in Sydney, Australia. Dick Smith Holdings Company was basically owned by Dick Smith and his wife until they sold it to Woolworths Company in 1982. The business ended in FY2016 after entire acquisition by Anchorage Capital Partners. According to the FY2014, Dick Smith Brand revenues were approximately AU$1.2 Billion. History summary of the Dick Smith Company ownership Dick Smith Limited was started by Dick Smith in 1968 as a full chain of trade stores that basically sold user electronic products, hobbyist electric elements and electronic projects kits (Clements, 2015). The business started in small rented houses in a vehicle park in the Sydney outskirts with a capital of only A$610. At the start, the company emphasized on servicing andinstalling car receivers. In FY1969, the company’s business needed it to move to a much bigger building in the country. The business promoted itself with zany styles, and smiths ownpublicity acts. The company basically profited from the CB receiver boom in the 1970s, and by the end of ten years, the business had several stores all over the country. Dick Smith and

Business finance and quantitative methods 3his wife were the sole owners of the company since it was founded until they sold the majority of the company shares to Woolworth Company in 1982. Dick Smith Holdings Limited basically expanded to several areas in the country with the aim of increasing the revenues by stocking diverse products such as electronic kits and Televisionreceiving stations because of the declining rates of interest (Eriksson, and Kovalainen, 2015). After the sale of the company majority shares to Woolworth Limited, Dick Smith Holdings Limited later established itself as Dick Smith Electronic Powerhouse Limited that was a storeacross Australia that majored in producing diverse goods in the computing, armature and audio visual radio regions to heighten its overall production. In 2008, the company revamped its flagship following Woolworth Company review to shed off the unit because it was not generating enough revenues for the parent company (Lau, 2016). In this aspect, Dick Smith Electronic Powerhouse Limited rebranded to Dick Smith Technology Limited that engaged indesigning and production of wide range of electronic devices. Following a further tactical review, the firm decided to continue in its operations with the new notion under the rework Dick Smith – Speak to the Experts branding merger with the existing Dick Smith Electronic and Powerhouse Supplies in the similar banner (Cascetta, Carteni, Pagliara, and Montanino, 2015). In 2008, the new Dick Smith format and logo was moved out with several power stores like Auburn being changed so as to apt the new businesslogo. In March 2009, Woolworth Company Limited confirmed the conclusion of the Powerhouse as a distinct company and that the firm third customer electronic brand will be progressively removed over the subsequent three years and the store's lease ended. In FY2012, Woolworth Company stated that after the outcomes of a strategic evaluation and an AU$300 Million shakeup, the company will close-up to 100 Dick Smith Shops and basically sells the company (Zvoch, 2014). The firm was fully sold to Anchorage Capital Partners for an opening cash amount of AU$20 Million and the final cost of AU$115 Million. Anchorage

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