Please prepare a 2-3 page paper answering the case study questions. Note: Papers should NOT exceed 3...

Question

Please prepare a 2-3 page paper answering the case study questions. Note: Papers should NOT exceed 3 pages. Please use Times New Roman, 12-point font with 1” margins on each side (double-spaced). I recommend the following format for the paper: Introduction, Headings for each question, Conclusion/Summary. In addition, please cite references.

You should answer the case study questions by clearly stating your position(s) and supporting your points of view. In addition, I encourage you to incorporate insights discussed throughout the course and provide additional information beyond what was discussed in class (e.g. include current events and external references).

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Khushboo · Accepted Answer

Brief introduction:
Recharge Inc. is a technology-based company that manufactures and distributes battery charging cases for smartphones and other devices. The company is growing rapidly over the past few years and the top customer of the company is Apple Inc. Illini Partners is a private equity firm that is interested in the acquisition of Recharge Inc. Illini Partners has hired us as a consultant to perform due diligence of potential acquisition of Recharge Inc. and needs to analyze various aspects such as business and operational risk, non- GAAP adjustments and valuation model analysis. 
Business and operational risks and ratio analysis:
The major customers of the company are Apple Inc and Walmart. Apple Inc. is one of the major customers of the acquiree company and due to the signing of a contract with Apple in 2020 the sales of the company have been increased by almost 50%. The 10-year contract is expiring in 2022 and Apple Inc. is also considering introducing their battery case and there are chances that the contract may not be renewed by Apple Inc. The non-renewal of the contract is one of the significant business and operational risks and its sale can be declined by 50% which can negatively impact the profitability. 
The current cash conversion cycle of the company is 87.1 days which was earlier 35.3 days in the year 2017. The cycle has been increased with a significant margin which shows that the working capital management of the company has deteriorated and it is much than its competitors i.e. 87.1 days vs 19.5 days.

Please prepare a 2-3 page paper answering the case study questions. Note: Papers should NOT exceed 3 pages. Please use Times New Roman, 12-point font with 1” margins on each side (double-spaced). I...

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