Team #67
Halliburton PwC Case Competition
Dec 02, 2015
PwC Halliburton strategic recommendation, suggesting acquisition of Solazyme as an alternative.
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Team #67
Agenda
Background
Market Analysis
Recommendation
Business Model
Strong Base:Over 90 years of experience in
oil and natural resources
Strong Domestic Stance: 2nd largest market shareholder (U.
S.), acquiring 3rd largest market shareholder (Baker Hughes)
Strong International Stance:
Operates in 90 countries with 70,000 employees
Unique Competitive Advantage
Proprietary Technology: The LEAP Adaptive Production Solution:1) Shadow Frac Plug2) ProductionWave™ Solution3) Fastrak Logging-while-drilling Fluid Analysis & Sampling System
Background
Market Analysis
Recommendation
$2,595 billion in revenue
(2014)
Forecasted Price Decreases
(2016)
260% Economy Expansion
(2040)
BIOFUELS & BIOMASS
Background
Market Analysis
Recommendation
Clean Emissions
Price is Relatively Constant
Renewable
Metrics to Evaluate a Biotech Company
$242. 18M Market Cap
$299.77 M Enterprise Value
54.1M Revenue
EV/EBIDTA-2.74
Return on Equity-22.5%
Operating Margin -204.29%
Solazyme has financial problems…
$242. 18M Market Cap
$299.77 M Enterprise Value
54.1M Revenue
EV/EBIDTA-2.74
Return on Equity-22.5%
Operating Margin -204.29%
Solazyme has financial problems…
Mitigate Short Term Pressure
Be Proactive Long-Term
Acquire Solazyme
Appendix A: Solazyme DCF Analysis
Appendix B: LIQUIDITY CHART (Raw)
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