Read through the MD&A in Dorel's 2011 Annual Report, focussing on comments and key numbers for the Recreational/Leisure segment. Pay attention to growth numbers and other trends with respect to Cannondale and Schwinn and their respective product groups and distribution channels. CANNONDALE: The Cannondale product line is part of the Cycling Sports Group. It is often the product line most cited when the company is quoted with respect to the Dorel's overall performance. Dorel purchased Cannondale in 2008. For calculating the NPV of Dorel's Cannondale customer in Canada, you will need to start with a proxy for cash flows. Here is a link to information about EBITDA (Earnings before Income Taxes, Depreciation and Ammortization) for Cannondale in 2007 which is just before they were purchased by Dorel: | Get an A+| Custom, PLAGIARISM-FREE papers

DOREL: Step One – NPV for Canadian Customers for Cannondale and Schwinn

GENERAL TIPS:

Read through the MD&A in Dorel’s 2011 Annual Report, focussing on comments and key numbers for the Recreational/Leisure segment.

Pay attention to growth numbers and other trends with respect to Cannondale and Schwinn and their respective product groups and distribution channels.

CANNONDALE:

The Cannondale product line is part of the Cycling Sports Group. It is often the product line most cited when the company

is quoted with respect to the Dorel’s overall performance. Dorel purchased Cannondale in 2008.

For calculating the NPV of Dorel’s Cannondale customer in Canada, you will need to start with a proxy for cash flows.

Here is a link to information about EBITDA (Earnings before Income Taxes, Depreciation and Ammortization) for Cannondale in 2007

which is just before they were purchased by Dorel:

http://www.prnewswire.com/news-releases/pegasus-capital-advisors-wins-buyouts-magazines-turnaround-of-the-year-award-for-cannondale-bicycle-61650287.html

SCHWINN:

The Schwinn is part of the Pacific Cycle Sports Group. It is also a product line which is quite often cited when the company

is quoted with respect to the Dorel’s overall performance. Pacific Cycle Sports Group purchased Schwinn in 2001.

Dorel purchased Pacific Cycle Sports Group’s Schwinn and GT Brands in 2004.

For calculating the NPV of Dorel’s Schwinn customer in Canada, you will need to start with a proxy for cash flows.

Here is a link to information which states what annual sales were for Pacific Cycle Sports Group when Dorel bought the company in 2004.

which is just before they were purchased by Dorel:

http://www.dorel.com/press/2004/Jan1304E.pdf

When Schwinn bought Pacific Cycle Sports Group, they had three product lines, Schwinn, GT and Mongoose.

Here is a link to information which provides market share estimates for those three product groups in 1991.

http://deborahmccurdy.files.wordpress.com/2012/04/schwinn-bicycles.pdf