Case Name :      Hongxing Auto Sales and Service Co.

Authors :           James E. Hatch, Yuan Shi, Wei Sun

Source :             Ivey Publishing

Case ID :            909N31

Discipline :        Finance

Case Length :    10 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The Li family, the sole owners of Hongxing Auto Sales and Service, are ready to sell the company. They must determine how much the business is worth and the best method of negotiating the sale of the business. This case deals with the valuation of a small, privately-owned business, and will develop students’ skills in sizing up a business and placing a value on a business using a variety of methods, including liquidation value, discounted cash flow and price-earnings multiples.