Question 1: Using different valuation methods, prepare two valuations of ABF. One of the methods used must be EV/EBITDA method. Critically comment on the answers for the two valuations, and explain which valuation you consider to be the preferred valuation.
Question 2: What would be your advice to the directors of ABF about splitting the business into two separate publicity-quoted companies: one for retail(Primark/Penneys etc.) and one for the remaining parts of the business? Support your answer by detailed calculations showing the valuations on which you are basing your advice.
Question 3: In order to support your answer to Question 2 above, providing examples of other publicly-quotes business that have followed a strategy of ‘spinning off’ part of their business into a separate public company, and critically discuss the examples you have chosen.