Group 7

KimberlyAlonzoStephen HebertMyles BragmanTuan Nguyen

Kenneth KrogstadAnthony Silvio

Alexander GuinnSean Gonzales

Background MME is a cooperative and an ethanol

production plant Ryland Utlaut was the CEO and major

factor in starting the plant $58 million needed to build the plant

Half raised through local farmers and banks while the other half was financed

The plant ran 353 days a year and only went down for routine maintanence

Central ProblemEntry of new firms into the

ethanol marketLarge firms have entered the

industry, saturating the marketPOET, VALERO, Archer-

Daniels Midland

GOALSLiquidity for the shareholdersReduce ethanol production costs

by using cellulosic technologiesRisk ReductionStop the corn commitment

Constraints Increased competitionBlend WallDecrease in Government

IncentivesNew TechnologiesRisk

Alternatives Sell the plant

Missed initial $280 million dollar deal involving a 6 plant merger

Current appraisal as of 2010 is 50 million Expand and acquire new plant

Increasing economies of scale Maintain Current Status

Continue doing what made them successful in the past

Alternative ChosenSell the plant

High market saturationEliminates both goals and

constraints due to exiting of the ethanol industry

ImplementationSell the company at current

appraised $50 million value20% in Cash and 80% in Stock of

the CompanyAdditional contractual

agreement to guarantee continual purchase of local corn