Jade Sdn Bhd: should it acquire Tulip Garden Hotel?

Learning outcomes
▪ Perform relevant analysis (financial and non-financial) related to investment decision-making.
▪ Make decision based on the analysis.

Case overview/synopsis
Jade Sdn. Bhd. (JADE), since its establishment, has been mainly involved in providing services in facility management and cleaning services. Apart from these main services, JADE was also involved in hospitality management, travel and tours, and agribusiness. The current involvements were already varied, and the Board was thinking of furthering the diversification activity to generate more revenues. As the Chief Executive Officer (CEO) of JADE, Ahmad was required to conduct the necessary analysis and provide his recommendation to the Board whether JADE should proceed with the purchase of Tulip Garden Hotel (TULIP). He had one month to act before proposing his recommendation to the Board.

Complexity academic level
Undergraduate and Postgraduate

Supplementary materials
Teaching notes are available for educators only.

Subject code
CSS 1: Accounting and Finance.
