1. Greenlight, founded in 1968 and headquartered in Mississippi, faces brand and innovation issues and a large fine that impacts its balance sheet. 2. The solution proposes a joint venture between Greenlight and RubberUp to develop an innovative tire recycling solution, utilizing RubberUp's resources and Greenlight's funding. 3. This joint venture would allow Greenlight to recycle old tires while expanding RubberUp's production capacity, sharing risks and profits between the companies to rebuild Greenlight's brand and community impact.

1. Dream Team
Cam Dennis Trevor

2. Greenlight
● Founded in 1968
● Headquarters in Jackson,
Mississippi
● Innovation
● “Built at Greenlight for Greenlight”

3. The Problem
1. Brand
2. What should Greenlight do
3. Impact on balance sheet and any other
accountings issues
4. How can PWC support the efforts

5. The Solution
1. Focus on Brand Equity
2. A joint venture to create an
innovative solution for both
companies
3. Debt financing plan to pay
off the fine and other
expenses.

6. The
Rebuild
Brand Awareness
OE growth
Community

7. Brand Awareness

8. OE Growth

9. Community

10. The Solution
Joint Venture

11. Joint Venture
—A commercial enterprise undertaken jointly by
two or more parties that otherwise retain —their
distinct identities.
(www.investopedia.com)

12. Buy RubberUp
● Stay true to core
values
● Own technology
● R&D credit
● No extra parties
(streamlined decision
making)
● Possibility of using
their resources
● Add a new line of
business
● Aligned with green
theme
● Shared risk
● Increase in revenues
● Less capital required
● No wasted resources
● Separate entities stay
apart
● Assume all risk
● Very expensive and
no true time
parameter
● Goes against culture
and history of internal
development
● The cost to acquire
roughly 5 million
● Not necessarily turn
key
● Need for additional
production capacity
● Disagreement
between companies
Joint
Venture
Develop
internally

13. How it works
Step 1
Greenlight needs to
recycle old tires
Step 2
Need the resources to
get rid of old tires
Step 3
Do not want to spend
all the cash to find new
resources

14. How it works!
Green Light RubberUp
•Send old tires
•Fund the expansion with
capital
•Share future profits
•Acquires raw materials
• Contribute to the expansion
• Share future profits

15. The Assumption
RubberUp is a small company and does not have
the capacity to process all the tires Greenlight
needs to recycle

16. Green light RubberUp
Cost
If no capacity, expansion of equipment and
facilities
Transporation
Cost
Share Tech
Share profits
Benefits
Capacity for recycle
Sustainability
Potentially, future product sales
Benefits
Raw materials
Potentially, future product sales
Expansion of equipment and facilities

17. Need for PP&E

19. Debt Financing
What type of asset?
What is the Grade of investment?
Amount of financing required?
Effect on balance sheet

20. 1. Issue a bond
2. Corporate credit rating can not be
determined thus would assume a mix
of high yield and investment grade
rates leading to rate of 5%
3. Currently lots of cash on hand and
positive cash flow so just small impact
on balance sheet
4. With 4 million in cash flow could
finance up to 80 million dollars at 5%
The appearance

21. Ratios
Quick Ratio: 7,796.9
Current ratio: .2657
Working capital: (ca-cl) 7278.8
Debt to equity 1.903
Debt ratio: 65%

22. 1. Cash decrease and PPE increases while debt
increases
2. Cash decreases while debt increases leading to a
decreases in net income and ultimately a decreases
in equity
3. Revenue increases leading to increases in owner
equity due to more net income from retained
earnings
The Balance sheet

23. PWC Dream Team
1. Consulting - innovation, capital projects,capital
structure, people, and deals
2. Tax - Credits and deductions
3. Audit- Valuation services
4. Consulting- Strategy consulting

24. Why it works
Less Liabilities and
expenses
More revenues and assets
More equity and growth
for both companies