Latour-Marliac, Since 1875

Abstract

This case follows Charlie Zerzan as he tries to save Latour-Marliac, the cash-strapped but historically important company he owns in the south of France. Rather than devastate the company, the global pandemic of 2020 was a boon, leaving it with a stock of cash just as a handful of unique opportunities for growth arrived. Dumaurier must decide how far to go in pursuing these opportunities. On one hand, the company needs growth to break a decades-long period of stagnation, while on the other it cannot go back to the dangerously precarious cash position it had been in. How much debt is too much? How will revenue trend in the future? In order to seize the moment, Zerzan must project cash flows for the next 4 years, choose a growth strategy, and present his banker with corresponding pro forma income statements.