Carter International
11 Pages Posted: 30 May 2017
Abstract
Chris Smith had only joined the corporate finance team of the prestigious hotel concern Carter International (Carter) four weeks ago in early 2016, but was already advising the CEO in critical matters. Just that morning he had received a memo request to provide analysis related to a possible acquisition of Hope Enterprises and a change in capital structure.
Excerpt
UVA-F-1771
Rev. Mar. 1, 2017
Carter International
Chris Smith had only joined the corporate finance team of the prestigious hotel concern Carter International (Carter) four weeks ago in early 2016, but was already advising the CEO in critical matters. Just that morning he had received a memo request (Exhibit1) to provide analysis related to a possible acquisition of Hope Enterprises (Hope) and a change in capital structure. With some reassurance that he knew the basics of financial management, it was time to get to work.
Carter International
Carter had a long history in the hotel business. The Carter name was recognized internationally as synonymous with quality accommodations. Its flagship hotels were the Carter-Plaza in New York, the Carter-Beverly in Los Angeles, California, and the Carter-Ashelworth and Carter-Westminster in London. Carter owned and operated additional hotel properties in Australia, Great Britain, New Zealand, Turkey, and the United States, and two casino properties in Las Vegas, Nevada. In total, Carter maintained 79,000 rooms with an average occupancy of 71%. Management had previously sought to sell off Carter's gambling segment, but the new management team was now pushing to increase Carter's participation in this growth segment.
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Keywords: gaming industry, company acquisition
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