| Course | FI499 Bachelor's Capstone in Finance |
|---|---|
| Unit | Unit 9 |
| Paper type | Executive summary |
| Length | About 480 words, 4 pages double-spaced |
| Format | APA 7 student paper |
| School | Purdue University Global |
| Program | BS in Finance |
| Updated | October 2026 |
Free sample paper for FI499 Unit 9
Buy, on Three Conditions: A Unit 9 Capstone Executive Summary for Tidewell's Board
[Student Name]
Purdue University Global
FI499: Bachelor's Capstone in Finance
Unit 9 Executive Summary
[Instructor Name]
[Date]
Tidewell, Paddlemark and every figure are composite; the books cited are real.
Memorandum
To: Board of Directors, Tidewell Swim Schools From: Finance Re: Acquisition of Paddlemark Swim Academy
Recommendation
Buy Paddlemark's six schools for $21.0 million, subject to three conditions: signed ten-year extensions of the two expiring building leases, a $1.5 million holdback, paid out over twelve months as enrollment is confirmed, and a rate cap on the term loan.
The Figures
Value to Tidewell: $22.54 million, of which $19.75 million is Paddlemark on its own and $2.79 million is savings from combining.
Price: $21.0 million, ten times trailing EBITDA of $2.10 million.
Financing: a $14.0 million bank loan, rate currently 8.25 percent and floating, with the remaining $7.0 million paid from Tidewell's cash.
Debt after closing: 2.74 times combined EBITDA, against a covenant of 3.5 times.
Alternatives: building a pair of new schools, at roughly $11.0 million, has an estimated net present value of minus $4.17 million, because new schools take three years to fill; doing nothing leaves Paddlemark to another buyer.
Why the Price Is Justified, and What It Depends On
Paddlemark alone is worth less than the price. The deal makes sense only because Tidewell expects $350,000 a year of savings and a recovery in Paddlemark's margin from 25 to 27 percent. Of the two, the margin matters more: if it stays at 25 percent, the deal is worth about what it costs. Paddlemark's margin has fallen for three years as instructor pay rose. A trial of Tidewell's class-planning tool at two Paddlemark locations, before signing, would show whether that recovery is within reach.
The board is being asked to pay for improvements Tidewell will make, not for Paddlemark as it stands, so the decision is really a judgment on whether Tidewell can run Paddlemark's schools as well as its own.
Why the Conditions
The two leases cover a third of Paddlemark's business; losing them would cut value to $17.64 million. The holdback protects against families leaving during the rebrand. The rate cap limits the cost of a rise in rates on the floating loan.
What Would Change the Recommendation
Finance would advise against the deal if either landlord refuses to extend, if the seller asks for more than $22.54 million, if the scheduling test shows Paddlemark's margin cannot rise above 25 percent, or if Tidewell's required return rises above about 11 percent. Each of these can be checked before signing, and the board will receive a short note on each before the offer is sent.
Decision Requested
Approve a signed offer at $21.0 million on these conditions, and authorize the scheduling test before signing (Minto, 2009; Koller et al., 2020).
References
Koller, T., Goedhart, M., & Wessels, D. (2020). Valuation: Measuring and managing the value of companies (7th ed.). Wiley.
Minto, B. (2009). The pyramid principle: Logic in writing and thinking (3rd ed.). Pearson.
FI499 Unit 9 instructions, in plain terms
Unit 9 of FI499 asks for an executive summary of your capstone recommendation. Address it to the decision maker named in the case. Put the recommendation and its conditions in the first sentence. Present the key figures compactly: value, price, financing, the effect on debt and the alternatives with their values. Explain in a short paragraph what the recommendation depends on, naming the single assumption that matters most and any test that would confirm it. Explain briefly why each condition is there. State what would change the recommendation. End with the specific decision you are asking for. Keep it to one page, with no detail a reader would not need before deciding. Cite a source on structuring business writing and a valuation text in APA 7.
How the FI 499 Unit 9 example is put together
The sample's opening sentence backs the purchase, conditioned on new leases, money held back against enrollment and a cap on the loan rate. Figures follow on separate lines: $22.54 million of value, $19.75 million of it stand-alone; the price; a $14.0 million floating loan plus $7.0 million of cash; debt at 2.74 times EBITDA; and building for roughly $11.0 million with a value about $4.17 million below its cost. A paragraph explains that the margin matters more than the savings and proposes a two-school scheduling trial. The highlighted sentence frames the vote. Short sections explain each condition, list four developments that would reverse the advice and ask the board to approve a conditional offer.
Reading the FI499 Unit 9 grading rubric
Executive summaries in FI499 earn points for clarity and completeness on one page. Graders look for the recommendation and its conditions in the first sentence, the figures a decision maker needs, the alternatives with their values and a plain statement of what the answer depends on. The rubric rewards naming the decisive assumption, explaining each condition in a sentence, stating what would reverse the advice and ending with a specific request. Summaries that build toward the recommendation instead of leading with it, include detail better left to appendices or omit the alternatives lose points. Structure that puts the answer first, then support, helps a busy reader.
Common FI499 Unit 9 mistakes, and how to avoid them
Weak Unit 9 summaries read like introductions, saving the recommendation for the end. Others try to fit every figure from the term onto one page. Alternatives are dropped, so the reader cannot see that they were valued. The assumption the answer depends on goes unnamed. Conditions appear without reasons. The page ends without saying what decision is requested. If your capstone's decision maker is an owner, a lender or a city council, the summary can be shaped to what that reader needs before voting. One page forces choices, and those choices are part of what graders assess.
Get an FI499 Unit 9 example written to your instructions
Forward the Unit 9 prompt, the rubric and the analysis your summary must compress, valuation and risk work included. Leading with your decision and the conditions on it, the summary carries the key figures in one table and matches every number to your earlier schedules. The first sample is free and typically reaches you in 24-48h. The paper above is an original model document written by our desk, not a submitted student paper and not an official Purdue University Global document.
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FI499 Unit 9 questions, answered
Should the alternatives appear in the summary?
Briefly, yes. A reader deciding between acquiring, building and waiting needs to see that the others were valued, not just dismissed. The sample gives building its estimated net present value, minus 4.17 million, and describes waiting in a clause. The detail behind both stays in the full document, where the greenfield figures are worked in full.
Where can I find a free FI499 Unit 9 sample paper?
This page holds a full FI499 Unit 9 executive summary recommending a composite swim school acquisition on three conditions, with the key figures, alternatives, reversal triggers and APA 7 references.
Why lead with the recommendation?
Because a board member may read only the first lines before the meeting. Putting the decision and its conditions first lets the rest of the page support an answer the reader already has, rather than making them search for it.
What does the board actually decide?
Whether to approve a signed offer at $21.0 million on the stated conditions, and whether to authorize the scheduling trial at two schools before the offer is signed.
Why name what would reverse the advice?
So the board knows which facts to watch. The sample lists a refused lease, a higher asking price, a failed margin test and a higher required return, each of which can be checked before signing.