Pick-N-Pull Value Analysis

In: Business and Management

Submitted By huskers19
Words 3231
Pages 13
Pick-n-Pull Value Analysis

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Healthcare Financial Management
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June 2013

Executive Summary
This paper discusses the EVA analysis of Schnitzer Steel Industries and Pick-n-Pull Auto Dismantling Inc. as both a part of Schnitzer Steel Industries and as a stand alone company. Pick-n-Pull is better served as an individual company. As their own entity, Pick-n-Pull would be able to grow its number of locations, sell their scrap car bodies to the highest bidder and expand into additional markets without having to seek permission and wait for approval for funds from Schnitzer Steel. This paper shows the reasons that in my opinion Pick-n-Pull would be a much better investment as its own company without Schnitzer Steel’s ownership.

Established in 1987, Pick-n-Pull Auto Dismanteling, Inc. (PNP) is a chain of self-service auto parts stores and is one of the largest recyclers of end-of-life vehicles in the industry. They have 61 locations currently in the United States and Canada and while many other companies are closing location, they are continuing to grow.
The basis for the retail portion of their operation is simple customers pay their admission to the yard (admission prices vary by yard location), bring their tools and remove the parts that they need for their cars, vans and trucks foreign and domestic at a fraction of the price they would pay a dealership or even an automotive repair business. Pick-n-Pull keeps an online inventory of the cars on the premises and can even offer a customer a part “Interchange” which means that a part off of another make or model of vehicle is interchangeable with theirs. They also offer what they call “builders” which are cars that run and can be driven but need some work to make them reliable vehicles. Pick-n-Pull services more than 5 million customers each year.
Pick-n-Pull also…...

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