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Group 7
KimberlyAlonzoStephen HebertMyles BragmanTuan Nguyen
Kenneth KrogstadAnthony Silvio
Alexander GuinnSean Gonzales
Background MME is a cooperative and an ethanol
production plant Ryland Utlaut was the CEO and major
factor in starting the plant $58 million needed to build the plant
Half raised through local farmers and banks while the other half was financed
The plant ran 353 days a year and only went down for routine maintanence
Central ProblemEntry of new firms into the
ethanol marketLarge firms have entered the
industry, saturating the marketPOET, VALERO, Archer-
Daniels Midland
GOALSLiquidity for the shareholdersReduce ethanol production costs
by using cellulosic technologiesRisk ReductionStop the corn commitment
Constraints Increased competitionBlend WallDecrease in Government
IncentivesNew TechnologiesRisk
Alternatives Sell the plant
Missed initial $280 million dollar deal involving a 6 plant merger
Current appraisal as of 2010 is 50 million Expand and acquire new plant
Increasing economies of scale Maintain Current Status
Continue doing what made them successful in the past
Alternative ChosenSell the plant
High market saturationEliminates both goals and
constraints due to exiting of the ethanol industry
ImplementationSell the company at current
appraised $50 million value20% in Cash and 80% in Stock of
the CompanyAdditional contractual
agreement to guarantee continual purchase of local corn