Outsourcing Valuation Analysis: Cooper Wiring Devices, Inc.


A law firm engaged Anderson Economic Group, LLC on behalf of Cooper Wiring Devices, Inc. to examine outsourcing and to consider its impact specifically, the impact on consumers and the macroeconomic implications as a whole.

Our report first discusses the history of outsourcing, the economic theories, some important political turning points and the fundamental reasons companies outsource. We reviewed the prevalence of outsourcing and employment as well as the relationship between outsourcing and quality. Profiles of well known global companies in various business sectors that have chosen to outsource, such as Boeing and Xerox, were also analyzed.

Finally, we reviewed the outsourcing behavior of six competitors of Cooper Wiring Devices, including Leviton, and provided data showing what all six companies had outsourced to China and Mexico. We discuss why outsourcing is such an important business strategy for well run companies that must stay competitive in a global environment if they want to survive.

The Cost of Bailout Versus Bankruptcy Among the Big 3

Our experts have closely followed the ups and downs of the automotive industry, providing clients with detailed information to help them understand and plan for the resulting changes. Our industry analysis is designed to provide timely, concise, and relevant information that can help any organization—from professional investors, to retailers, to governments—understand the rapid change in the industry, and how restructuring in the industry may impact their own sales, revenues, customer base, and more.  

In October, November, and December of 2008, our experts provided clients with a series of reports updating them on the economic relaities facing the automotive industry. AEG then teamed up with BBK, Ltd. in order to produce the first comprehensive analysis of the taxpayer costs of the Federal bridge financing requested by the auto manufacturers, compared with the likely costs of a bankruptcy declared by one or more of the same manufacturers.

Franchise Damages and Antitrust Analysis: Diageo North America

 

Franchise Value Analysis: Heineken USA and Alaska Distributors

Franchise Value Analysis: Heineken USA and Alaska Distributors

Mortgage Wholesaler Valuation Analysis: Law Firm


Our analysis focused on the future cash flow that the mortgage wholesale operation would have generated had the plaintiff been allowed to continue directing the operation. The operation was set up as a unit of a larger bank, and generated income through inter­est earned on its loan portfolio, and by selling loans on the secondary market. To deter­mine the value of this operation we estimated overall loan generation in coming years, taking into account economic and market changes and which loans would be added to the portfolio and which would be sold to the secondary market. Expenses of the operation were also forecasted, allowing us to estimate cash flows for the operation. These cash flows were then discounted to the present day to arrive at the value of the operation.

The findings of our analysis were summarized in an expert report which was used for settlement purposes. Shortly after our report was submitted our client accepted a favor­able settlement offer.

A Chicago based commercial litigation firm, retained Anderson Eco­nomic Group, LLC as a expert in a matter involving the value of contractual rights to a share of profits earned by a mortgage wholesale operation. Our work was done on behalf of the plaintiff, who was seeking damages for termination of contact.

Sports Franchise Valuation: The Chicago Cubs

Geckil, Mahon, Anderson

Anderson Economic Group has developed methods of estimating the value of businesses that takes into account the unique characteristics of such businesses, such as the importance of the brand, the sales or market territory, and other factors.

Damages in Antitrust Cases: AEG Working Paper 2007-02

Anderson, Geckil, Bolema

In this article, the authors use their practical experience in industries in which antitrust issues commonly arise, and their experience in estimating commercial damages in breach-of-contract cases, to examine the issue of properly identifying and estimating antitrust injury.

Amicus Curiae Brief to the U.S. Supreme Court re: Resale Price Maintenance

Anderson, Bolema

A brief filed by Anderson Economic Group in the U.S. Supreme Court in the matter of Leegin Creative Leather Products, Inc., v. PSKS, Inc., dba Kay’s Kloset…Kay’s Shoes. Brief addresses resale price maintenance agreements and per se illegality under the Sherman Act and anti trust provisions.

Three Essential Factors in Estimating Business Value or Commercial Damages

Anderson, Geckil, Funari

The income approach is a common and accepted manner of estimating the value of both publicly-traded and closely-held businesses, as well as calculating certain types of commercial damages. The most common method within this approach is known as “discounted cash flow” or DCF.

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Developments in Litigation Economics

Patrick L. Anderson

This book is a collection of original articles on recent developments in the rapidly growing field of litigation economics. AEG Principal Patrick L. Anderson contributed “New developments in business valuation.”