Finance-analyzing & valuing the situation.

 Write a 1,000 word essay (2 pages plus exhibits) analyzing & valuing the situation. Write your essay to make a recommendation of what the company should do. Clearly state whether or not Palamon should invest in TeamSystem, S.p.A., and if you recommend not investing, what counterproposal you would make. Explain your rationale for this advice, and be aware that “my valuations says it is worth $_____” is not sufficient rationale. Explain what assumptions drive your numbers. Does TeamSystem fit with Palamon’s investment strategy, and how (or how not)? What are the specific risks of this deal? How does the cross-border nature of the deal introduce risk? Based on the risk, explain and defend your choice of a discount rate. How much is 51% of TeamSystem’s common equity worth? Use both a discounted cash flow and a multiple-based valuation to justify your recommendation. Build a valuation model and include your valuation in the exhibits. Include sensitivity and scenario analysis and consider any relevant uncertainties or qualitative factors. Explain what non-price terms are important. Make sure your essay follows the case essay rubric and the advice in Ellet’s book, and use the rubric (at the end of this document) to critique and revise your work before turning it in. The case is Financial case: Palamon Capital Partners/ TeamSystem S.p.A.