Case Name :      Northampton Group Inc.: How to Increase Shareholder Value

Authors :           Stephen Sapp, Kamal Patel

Source :             Ivey Publishing

Case ID :            W11104

Discipline :        Finance

Case Length :    21 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The case examines the issues faced by a hotel management and development company as it tries to increase the return to its shareholders. The firm’s major shareholders have commented that they believe the firm is currently under-valued, so management is considering several means of unlocking extra value. Due to difficult economic conditions resulting from the Global Economic Crisis, there are both many opportunities as well as many risks to the alternatives they are considering. The case provides both the opportunity to use several different valuation methods to determine if the company is, in fact, undervalued, as well as a discussion of several alternatives for unlocking value ranging from starting an active acquisition strategy, to re-organizing its corporate structure with either an updated capital structure or converting to a real estate income trust.