Ufs Corporation (a)

5 Pages Posted: 30 May 2017

See all articles by Mary Margaret Frank

Mary Margaret Frank

University of Virginia - Darden School of Business

Abstract

A new credit analyst for a bank has received the consolidated balance sheet of a conglomerate and the balance sheet of its intended target company. The bank wants her to consider the credit risk at UFS Corporation (UFS), but she realizes that she needs information that wasn't included in the balance sheets. Students will be able to examine the information she obtains from the loan officer responsible for UFS.

Excerpt

UVA-C-2323

Rev. Oct. 2, 2013

UFS Corporation (A)

On her first day at her job at the bank, instead of getting a simple company balance sheet, Connie Likert received the consolidated balance sheet of a conglomerate and the balance sheet of its intended target company (Exhibit 1). She stared at the balance sheets, completely overwhelmed. The bank wanted her to consider the credit risk at UFS Corporation (UFS) after an impending acquisition.

Likert, having recently received her MBA degree, had just started as a new credit analyst for the First National Bank in Bruceton Mills, West Virginia. She realized that she needed information that wasn't included in the balance sheets, so she tracked down the loan officer responsible for UFS and learned the following information about each of its companies.

UFS Corporation's Current Organizational Structure

. . .

Keywords: credit risk, acquisition, consolidated balance sheet, push-down accounting

Suggested Citation

Frank, Mary Margaret, Ufs Corporation (a). Darden Case No. UVA-C-2323, Available at SSRN: https://ssrn.com/abstract=2974032

Mary Margaret Frank (Contact Author)

University of Virginia - Darden School of Business ( email )

P.O. Box 6550
Charlottesville, VA 22906-6550
United States
434-924-4432 (Phone)
434-243-5021 (Fax)

HOME PAGE: http://www.darden.virginia.edu/faculty/frank.htm

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