Berkshire Carter S LBO Case Study

2261 Words Apr 15th, 2015 10 Pages
1. How does Berkshire Partners create value?
Berkshire partners believes in creating values “based on successful relationships, hard work, analysis, and the open decision making of all individuals” (Partners) They do not see the acquiring company as just a financial investment but as an investment in a relationship between two living entities. They work hard in collaboration with the acquired firm to do the analysis and research and consult all individuals in both firms regarding the future of the company. They focus on quality over quantity and tend to have a smaller set of deals they think will be successful and devote their resources to conduct in-depth analysis to uncover all necessary information and thorough due diligence for each
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GP – S,G&A – Non-Recurring Charges = EBITDA. I have assumed there are no non-recurring charges.
EBITDA – DA= EBIT, although I have used the numbers given in the projection.
I have assumed the corporate tax rate to be 39.3% (Foundation, 2013) and deducted the same from EBIT to obtain NOPAT.
To obtain Free Cash Flow For The Firm (FCFF), I added back the D&A, less

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