Sandy Dakofsky

As CFO of parent company prepared detailed written report valuing overseas subsidiary in preparation for move to the UK.

Key issue: Had recurring revenue, good profitability but continued to operate within a band of sales. Competitive positioning in various market segments limited growth potential. Discounted cash flows and guideline company analysis, showed that regular dividend program to the parent company will result in a fair market value close to book value, thus minimal gain… Show more

As CFO of parent company prepared detailed written report valuing overseas subsidiary in preparation for move to the UK.

Key issue: Had recurring revenue, good profitability but continued to operate within a band of sales. Competitive positioning in various market segments limited growth potential. Discounted cash flows and guideline company analysis, showed that regular dividend program to the parent company will result in a fair market value close to book value, thus minimal gain will be reported. Show less

Sale of publicly traded water utility.
Key issue: valuing regulated and unregulated assets in a thin market.

Presentation of alternative sources of funding for Home Depot supplier.

Article for Fairfield County Business Journal (December) about the usefulness of fairness opinions.

Article in Fairfield County Business Journal (March) about investment fads.

Expert witness in commercial jet engine manufacturing arbitration.

Key issue: valuing a "buggy whip" with a deep aftermarket and long economic life. Saab had engaged our firm after Windstar Capital alleged $95 million in damages in a lawsuit arising from when it bought a Saab subsidiary, AeroThrust (AT), in 2001. AT is the largest jet engine overhaul facility in the U.S, specializing in the repair, overhaul, sale and lease of Pratt & Whitney JT8D engines. They were the most widely used… Show more

Expert witness in commercial jet engine manufacturing arbitration.

Key issue: valuing a "buggy whip" with a deep aftermarket and long economic life. Saab had engaged our firm after Windstar Capital alleged $95 million in damages in a lawsuit arising from when it bought a Saab subsidiary, AeroThrust (AT), in 2001. AT is the largest jet engine overhaul facility in the U.S, specializing in the repair, overhaul, sale and lease of Pratt & Whitney JT8D engines. They were the most widely used engines on commercial jets in the world (727s, 737s, DC-9s and MD-80s). We had to weigh the impact of an up-and-coming competitive engine (CFM) that eventually would overtake the JT8D and that AT was not yet prepared to service. Furthermore, the picture was clouded by the long operational lives of both engine types (over 70 years), large mothballed inventory of old jets and engines that was reinstated when anticipated annual airline traffic was expected to be weak (versus buying new jets which had the CFMs). Additionally, the plaintiff appeared to paint a rosy picture about AT’s future capability to capture market share, its profitability and its cost of capital. Ultimately a substantially lower settlement was agreed to.
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Lengthy report for CFO and Director of Strategic Planning evaluating their $5MM tech investment.
Key issues: the importance of a deep marketing plan, how to judge when a technology is ready, and the value of imperfect market information.

Majority of portfolio was a high-tech investment.

Key issues: Determine if the executor of a $9 million estate invested appropriately, when over 50% of the investment was in a high-tech startup. The start-up was a 4th or 5th entrant in an already crowded field and they could only get limited field testing of the technology, suggesting a limited likelihood of success. Also, the executor was part of the management team and the financial arrangements favored that team at the expense of… Show more

Majority of portfolio was a high-tech investment.

Key issues: Determine if the executor of a $9 million estate invested appropriately, when over 50% of the investment was in a high-tech startup. The start-up was a 4th or 5th entrant in an already crowded field and they could only get limited field testing of the technology, suggesting a limited likelihood of success. Also, the executor was part of the management team and the financial arrangements favored that team at the expense of the estate. Our report was extremely negative and the estate was able to fire the executor and extract significant financial concessions from him through court proceedings. Show less

Presented (w/qualification) at Venture Capital Funding Case Study.

Advising on valuation and capital raise.
Key issue: importance of not squandering corporate assets after doing well in tight competitive market.

Advised very large group of shareholders of privately held company.
Key issues: the importance of missing significant market changes and the importance of management neglect.

Preparer for Carter Morse & Mathias' 9th and 10th annual conferences (1998-1999).

50-person firm (NYSE & PHLX)
Key issue: valuing a small firm with a few good producers, but on the whole mediocre.

Conducted thorough review of the economics of the homeowner mortgage application processing industry, including detailed competitive analysis.

Directed and prepared comprehensive 63-page report on the financial performance and competitive position of Shearson Lehman's Retail Brokerage Division.

Correctly forecasted that sustainable earnings of US Card products would fall well short of expectations due to declining demographics and growing attrition. Warned CFO in 1985 of key challenges that did occur in the late '80s.

Internal report to Travel Related Services' CFO. Decomposition analysis demonstrating that even in period of high inflation when card spending and profits soared, real spending per card was still vulnerable to economic fluctuations.

For Accounting Professors Sidney Davidson and Roman Weill and Ms. Angela Falkenstein for book on Replacement Cost Accounting.