Java For You

Abstract

This case involves a situation where the owners of a coffee shop needed to assess the value of the business as one of the owners had found a need to sell off their portion of the business. Jim Miller and Kathy Smith grew the coffee shop from its infancy 6 years previous weathering a failed expansion and taking the shop back to a level of significant profit. Located in an eclectic college town area of St. Louis, business had been steadily growing with both the influx of college students and professors as well as the local community. As life’s paths do change, Kathy determined that she needed to sell off her share of the business and a company valuation was necessary. The case places the student in the role of financial analyst in determining the most appropriate method of valuing the business along with performing the necessary calculations as well as conducting a competitive analysis.