BUSINESS EXPANSION PLAN OF PT M THROUGH THE ACQUISITION OF PT D AS A MINING CONTRACTOR

• Main Author: HAMDANI (NIM : 29107394), DHENDY
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/11998
• Institution: Institut Teknologi Bandung

<br /> <br /> <br /> The coal mining contractor business offers a fairly good profit. A contractor like PT D could reach an average of Rp. 2 billion net profit a year. PT M is a coal mining company which has been largely using the contractor service for their mining operations. Looking and considering the net profit received by their contractor, PT M is interested in expanding its business to a mining contractor. This final project will analyze which strategy solution is proper for PT M to expand its business to a mining contractor. The analysis will be done for 2 alternatives, the first is to perform an acquisition of an already-established mining contractor company (PT D) or establish their own mining contractor from scratch. The analysis will be done from a financial point of view. For the first alternative, the cost analysis is done with 2 kinds of method, which are the Discounted Cashflow (DCF) method and the market value plus goodwill method. And for the second alternative, the analysis is done with an all cost calculation method, to determine how much would it cost to build such company. The analysis result shows that the cost for the 1st alternative is Rp 86,015,100,000 and for the 2nd alternative is Rp 87,057,000,000. Those figure conclude that the proper solution for PT M's expansion is to perform an acquisition to PT D, because this solution offers the smaller cost. <br /> <br /> <br /> <br />