ACCA AFM case studies
ACCA AFM · Put your knowledge to work in context.
ACCA Advanced Financial Management (AFM) is the strategic-level optional exam for candidates who want to specialise in corporate finance and treasury work. It suits finance professionals who already have a grounding in financial management and now need to advise at board level. The ACCA AFM case studies are 5 cases and about 2,779 words.
1The Refinancing Window at Kestrel Foods
Kestrel Foods is an unlisted UK manufacturer with EBITDA of £48m and net debt of £210m (4.4x). Its £200m term loan matures in 14 months at a floating rate of SONIA + 375bp; SONIA is 4.1%.
576 words, about 3 min2Aardvark Air's Fleet Replacement Decision
Aardvark Air operates 12 regional aircraft with an average age of 14 years. It can (a) continue operating the fleet for 5 more years with annual maintenance rising from £8m to £14m and a residual value of £10m, or (b) replace now with 10 new aircraft costing £320m, depreciated straight-line to zero over 10 years, cutting fuel and maintenance costs by £22m pa and yielding a residual of £60m at year 10.
697 words, about 3 min3Valuing Vantage Analytics for a Management Buyout
Vantage Analytics is a profitable software firm with free cash flow to the firm of £18m last year, expected to grow at 12% for three years, then 4% in perpetuity. Comparable listed software firms trade at EV/EBITDA of 11x; Vantage's EBITDA is £26m but it is smaller and less liquid, warranting a 25% discount.
521 words, about 3 min4Hedging Decision at Brightwater Chemicals
Brightwater Chemicals expects to receive €40m in 6 months from a German customer. The current spot is €1.14/£ (i.e.
474 words, about 2 min5Restructuring Redwood Retail
Redwood Retail has 3 divisions: Grocery (EBITDA £30m, capex £8m), Fashion (EBITDA £12m, declining 8% pa, capex £6m) and Homeware (EBITDA £5m, loss-making after central costs). Group net debt is £180m at 6% interest.
511 words, about 3 min