Arundel Partners Investment Analysis

1992 words - 8 pages

Arundel Partners Investment Analysis

The proposed business venture, Arundel Partners, is an investment group which would purchase the sequels rights associated with all films produced by 1 or more selected U.S. movie production studios for a specified period of time, or a specified number of films. As your investment analysts, our goal is to assess the value of the sequel rights to allow a determination of the value of the overall investment as well as a reasonable price-per-film for the sequel rights.

Arundel Partners plans to pay to obtain a guarantee to the ownership of sequel rights for a set of films prior to production. It is assumed that only a small percentage of the films produced by a studio will be sequel candidates, based on the profitability of the initial film release. It is also recognized that the profitability of a sequel is typically lower than the initial release. This estimated profit will determine the proposed contract offer by Arundel Partners to the selected studio.
Sequence of Events
**Note: The diagram in Figure 1.1 outlines the timeline as it applies to the Arundel investment described.
Prior to proposal, Arundel will need to determine which studio they feel offers the best potential success, and propose the contract prior to knowledge of films to be produced during the contract period. Arundel will then own the sequels rights as defined in the contract. History suggests that a studio would entertain an offer around $2 million per film for the rights to the sequels of each move it produces that year.


Arundel's ownership rights begin on day 1 (year 0) of the contract. The lifeline of a film, as shown in the timeline above (please see Figure 1), is: 1 year in production; release to theaters and on video over the next calendar year; and, Pay TV in year 2 and Network TV in the 3rd calendar year. A sequel is typically released to theaters 3 years after the orignal film's initial release. Sequel rights also expire 3 years from the films initial release. Note that Arundel must declare, based on the profitability of the first release, whether or not it will produce the sequel, prior to the expiration of the rights at year 4.

Based on our valuation of the investment, as outlined below in the Analysis portion of the report, we have determined a per-movie-value of $8.9 million when considering purchasing the rights to the entire portfolio of 99 movies analyzed in the sample data. Based on production of 10 sequels, the per-movie-value of the portfolio would be $52.25 million. Our calculations based on the hypothetical portfolio is that Arundel Partners should make this investment as long as the present value of the expected cash flows from the sequel revenues exceeds the...

Find Another Essay On Arundel Partners Investment Analysis

China-Africa Essay

1774 words - 8 pages quest of developing its economy, eradicating poverty and learning from its partners. Dollar’s (2008) analysis on lessons that other developing nations could learn from China’s experience can be summarized in four points: 1) economic reforms play a crucial role, thereby leading the Chinese government to 2) open a door to foreign direct investment and trade; 3) agricultural reform, which results in output increase, thereby reducing prices of goods

China: Pros and Cons of the Regional Comprehensive Economic Partnership

1408 words - 6 pages / Analysis: Nine out the 12 countries that make up Australia’s top trading and investment partners (Thailand, Malaysia, India, Japan, Indonesia, China, R.O.K., Singapore and New Zealand) have also been partaking in the recent RCEP negotiations. The ASEAN nations, together with the plus six participating countries, attribute to nearly 60 percent of Australia’s two-way trade and approximately 70 percent of its goods and services exports, which is now

Foreign Investment in Australia

2902 words - 12 pages generally divided into to two main types; these being Direct Investment and Portfolio (Indirect) Investment. (As little as 10% is considered to be 'significant influence'). This investment comes in many forms: partners or shareholders of Australian companies, international expansion or stock acquisition when companies are floated on the stock market or undergo privatisation.Foreign Investment is vitally important to Australia's strong economic position

the cooperation in the supply chain

662 words - 3 pages • Introduction: Cooperation and trust among partners within the supply chain requires investments in human and assets in developing the natural processes needed for impacting efficiently customers in the market place. In the early 80, companies act independ looking for vertical supply chain integration. But market globalization, new technologies and new inventory management techniques require sustainable relationships among suppliers and

The US & Global Economic Trades

964 words - 4 pages intricacies associated with establishing trade partners and trade boundaries. Formal institutions such as governments and world councils establish rules of the game in an effort to create stability. This analysis will evaluate the U.S. economic institution in relation to the rest of the world and compare its growth with another growing country, South Korea. The analysis will highlight important trade partners over the last 3 years based on both

The Willamette University Endowment

693 words - 3 pages materials. Vintage Year Analysis With the exception of Northgate Private Equity Partners, each fund has some vintage year exposure between 2006 and 2008. Funds with vintage year exposure between 2006 and 2008 were making capital commitments and investments at the peak of the macroeconomic cycle. Historically, these funds that were paying higher multiples will have a much higher cost basis than funds with vintage years before or after. Funds with a

Importance of Ethics in Business

1042 words - 5 pages for business. Retrieved from (2013). Retrieved from (2013). Retrieved from (2013). Retrieved from big-business-but-what-does-it-mean-exactly (2012). Retrieved from agreements-and-policies/019520.pdf (2014). Retrieved from

An analysis of HBS case Acme Trust (Private Equity finance)

1016 words - 4 pages 1. Why is Warburg, Pincus proposing a different fee structure from the standard arrangement?A five forces analysis of the Private Equity Industry reveals that Warburg is shifting its fee structure to take advantage of limited customer bargaining power from its customers while trying to finance its access to increasingly scarce investment opportunities and deny it to its rivals through a price-war.Warburg, Pincus is proposing to shift its fee

sony kees

560 words - 2 pages ; Model count reduction and investment in manufacturing capabilities to improve efficiencies. S di ti t t i t• Sony divesting non-strategic assets • Utilise electronic platforms to distribute products Further integration of business• Further integration of business • Creating interoperability • Develop crossover products• Develop crossover products Q2. Continued... SWOT Analysis: ThreatsThreats • Increased

NAFTA - Canadian viewpoint

1819 words - 7 pages new dimensions to analysis of trade policy, dimensions that are missing from economics-based models of adjustment that cannot handle factors such as intra-industry trade and the subtleties of multinational behaviour. From a Canadian perspective the United States is still the major source of foreign direct investment. For many years now nearly 80 percent of all foreign direct investment in Canada has come from the United States. The result of

The Role of Technology in Transforming the New Zealand Economy

2147 words - 9 pages these trends are evident in New Zealand, we have slipped behind our trading partners. We used to be like them, and now we are not. For example, (notwithstanding the problems around measurement) we still have an apparent low level of investment in R&D by firms, at about 0.3% of GDP (Table 2). In the past 50 years we have grown differently from our trading partners because: we were traditionally a pastoral economy, and diversified in a

Similar Essays

Arundel Partners Case Analysis

1490 words - 6 pages Arundel Partners Case Analysis Executive Summary: A group of investors (Arundel group) is looking into the idea of purchasing the sequel rights associated with films produced by one or more major movie studios. Movie rights are to be purchased prior to films being made. Arundel wants to come up with a decision to either purchase all the sequel rights for a studio's entire production during a specified period of time or purchase a

Nsa Survellence In American Essay

1407 words - 6 pages providing information to war leaders and high ranked decision makers (“About NSA” 1). The Network World refers to this as the “NSA's weird alphabet soup code names of secret spy programs” (Messmer 1). These two agencies do not only help the government officials they also give information to the Department of Defense, the Intelligence Community, industry partners, and other allies. To give the war generals a head start in battle, the NSA and CSS

Analizing Transportation In Supply Chain Essay

776 words - 4 pages project investment with mix-capital investment 3)Evaluate full investment project versus company cash flow Type of transportation options Actual: train, truck, boat and aircraft (not change) Route evaluation analysis (RE) for optimal transport system decision RE Delivery perform Actual system performs at same speed for customers (not change) Evaluate positive customers impact for increase speed Speed on delivery versus additional cost ( trade

Modern Business Environment: Total Quality Management

1525 words - 7 pages fact that the firm’s customers amount to approximately every computer user in the world, which necessitates managing customers’ experiences. Therefore, this company provides a good example of analysis of the application of total quality management as a vital concept in enhancing a company’s long-term success and promoting customer satisfaction. Microsoft has a huge customer base around the world to an extent that nearly every computer user on the
Nokia (12) | Olie & Smeermiddelen | Euphoria 2018 1080p WEB-DL x264 DD 5 1-M2Tv 19 минут