Got a tricky question? Receive an answer from students like you! Try us!

Laundromax - Case Study Example

Only on StudentShare
Undergraduate
Author : fkris
Case Study
Finance & Accounting
Pages 3 (753 words)

Summary

Generally, during the development stage of businesses, financing is a major critical success factor. As pertains to the Laundromax case, whose major goal was to revolutionize the laundry industry and seek nationwide recognition, the company would hence have to incur major capital, corporate and development expenditure. …

Extract of sample
Laundromax

With my financial management role, my plan for financing would start with personal owner equity. This would act as a show to outside investors of the personal trust that the founders have in the growth and success of their business and hence worth a further inducement for additional outsider investment. In order for Laundromax to attain self-sufficiency as a company, 100 stores must be established at an estimate of $500,000 per fully functional and operational store. This puts the total capital required to attain self-sufficiency at an estimate cost of $50,000,000. With such heavy initial capital outlay, personal equity would not be sufficient to meet this expenses and hence the vision of the business. I would result to investment capital with major focus on investment banks and venture capital firms who are willing and able to raise a major part of the required capital in return for an equivalent stake in the company’s assets. ...
Download paper

Related Essays

Finance and Accounting Term Paper: 3 questions (calculations)
0 ? 8,000,000 ?8,800,000 ?9,600,000 ?7,200,000 ?6,000,000 Variable costs ?0 ? 5,500,000 ?6,050,000 ?6,600,000 ?4,950,000 ?4,400,000 Contribution ?0 ?2,500,000 ?2,750,000 ?3,000,000 ?2,250,000 ?1,600,000 Additional Fixed costs ?0 ?1,150,000 ?1,150,000 ?1,150,000 ?1,150,000 ?1,150,000 Annual net cash flow ?0 ?1,350,000 ?1,600,000 ?1,850,000 ?1,100,000 ?450,000 The total working capital to be reclaimed at the end of the period =?1,350,000 (?900,000 + ?450,000) The salvage value = ?425,000 (10% ? ?425,000,000). Total variable per unit (Materials and Labour) = ?55 (?30+?25). Year t Cash inflows…
10 pages (2510 words)
A research into Sick Building Syndrome who suffers more male or female
Such factors cause discomfort and acute health symptoms. When twenty percent or more of a building’s occupants complain of these conditions, it is said that these individuals may be suffering from sick building syndrome (Akovali, 2007). Sick building syndrome is described as a condition wherein a group of people in the same building or similar structure experiences acute health symptoms which improves or disappears once they go out of the building. These symptoms include headache; irritated eyes, nose, and throat; cough; dry and itchy skin; dizziness and nausea; inability to concentrate;…
9 pages (2259 words)
Company Results and Future Expectations: Deutsche Bank
The other aim of forming Deustche bank was to facilitate effective international and foreign trade between Germany and the rest of the world and to engage in the banking business of almost all kinds (Jones, 1994). At the time of this bank’s formation, Germans foreign trade was as well on the rise. The bankers in Germany also became open minded and welcomed any innovative idea which helped propel the growth of the banking industry (Jones, 1994). The bank also made history as the last bank to be issued with the banking license at that state of events and its license stressed much on foreign…
Home buying process and its financial impacts
Buying a house can be the largest amount invested or spent upon any asset by the individual and so a careful investigation is necessary about the pros and cons of a home buying process 1. What are some common opportunity costs associated with the selection of housing? While selecting a house which an individual wants to buy he/she takes into consideration the apartment or the house first and then the individual also takes a look at the residential area in which he plans to dwell. However selecting the option of housing means that the individual has to bear some underlying costs or in some…
3 pages (753 words)
Throughput Accounting Research Paper
The purpose of these techniques is to develop a framework through which efficiency and performance of organizations should touch their peak level. In addition, such techniques must not only increase sales revenues, but also should be able diminish cost of doing business. Throughout the history of management accounting, a number of cost accounting techniques also have been developed to focus on the productivity and performance through fixed overhead costing methods, Absorption costing methods, Activity Based Costing (ABC), however a little amount of concentration has been provided towards the…
7 pages (1757 words)
The Qualitative Characteristics of Relevance and Reliability
IASB has set standards for financial reporting which ensure that the reporting is done according to the set principles by all the companies. This helps the users of financial statements in making crucial economic decisions as there is no ambiguity due to different accounting styles. The standards ensure that a company provides all the relevant information that influences the financial needs of the users. There are specific areas that are not allowed to be left untouched. There is a possibility that some users require non-financial information about a company which is not available in its…
14 pages (3514 words)
Tyco International Accounting Issues
One of the most notable accounting malpractice employed by the company involved the low attrition rate, which were written off at a remarkably slow pace. The consequence of this accounting misnomer was a significant inflation of the profits as reported in the company’s financial records. A consistent pattern of this accounting practice had the effect of giving the shareholders the wrong kind of impression regarding the performance records of this company (Maremont, M and, Laurie Cohen 12 a). The markets were also deluded into believing in the falsified accounting records of the company.…
6 pages (1506 words)