Subject: Palamon Capital Partners Details: I. Palamon Capital Partners/TeamSystem S.p.A. 1. What is private-equity investing? Who participates in it and why? How is Palamon positioned in the industry? 2. How does private-equity investing compare with public-market investing? What are the similarities and differences between the two? 3. Why is Palamon interested in TeamSystem? Does it fit with Palamon's investment strategy? 4. How much is 51% of TeamSystem's common equity worth? Use both a discounted-cash-flow and multiple-based valuation to justify your recommendation. 5. What complexities do cross-border deals introduce? What are the specific risks of this deal? 6. What should Elson recommend to his partners? Go/no go? …show more content…
This is a template to help you write a good answer. 1. Private-equity investing is the private purchase of shares from the company and not from open market. Those who participate in this include the known investors, promoters of the company, financial institutions or purchases made through appointed brokers. Such persons participate in private sales of shares to get better deals, know the shareholders, and lower the risk of takeover and interference in the management of the company. Palamon is positioned as an independent, professional, partnership, which is entirely owned by partners. It manages Palamon European Equity& LP and parallel funds and it is known to manage the largest pool of funds. Currently, it has a capital commitment of Euro 440 million. 2. Private equity is sold in large lots to known buyers at prefixed prices. There is usually twofold confidence. The investor has confidence in the company and its management and the management has the confidence that the company will allow its management to function independently and will not sell of its share to a predator. Public- market investing is done through public issues and the shares are sold in the open market. Market forces determine the uptake of shares and predatory purchases are common. 3. Palamon in interested in TeamSystem because it is a modern professional IT firm, has a competent team and is futuristic. It has
11. If you were a new investor who wanted to invest in stock, would you prefer to invest in registered public stock, or unregistered private stock? Why? (2-4 sentences. 1.0 points) Registered public stock. Most people do, and I can be more confident if I invest in that.
Walnut Venture Associates are a group of angel investors. In 1997 the club had around a dozen individual investors, forming an “angel group”. Their primary targets are investments ranging from $250,000 to $1,000,000. This is due to the gap of capital funds initiated by the VC’s from not considering investments bellow $1 million. Also, angel investors can acquire significant equity at low cost, and help the growth of the company with their knowledge and expertise. By selecting only the most exceptional people and ideas, investments in startups can lead to massive returns on relatively small investments. As unexperienced entrepreneurs, they are a key resource to have in order to achieve quick growth, and secure the company’s early stages.
11. If you were a new investor who wanted to invest in stock, would you prefer to invest in registered public stock, or unregistered private stock? Why? (2-4 sentences. 1.0 points)
This research paper will examine the Trans-Pacific Partnership. The Trans-Pacific Partnership reduces wages for workers, tariffs, taxes and environmental regulations down to minimum and redefines rules for trade in services and investment between partner countries to increase economic cooperation and the mobility of goods and services. The Trans-Pacific Partnership aims to produce the goods and services efficiently at the lowest possible cost for consumers. Minimum taxes and regulations limit the power of the labour, government, environmentalists and special interest groups to advocate. The paper will reveal significant risks and high public costs to the Canadian health care system especially the drug costs and the effects of the deal on Canadian dairy farmers and the labour market. Further, analyze the true cost of the deal to Canada and how it threatens the rights of indigenous communities. It will answer the central question whether Canada should continue to be a part of the Trans-Pacific Partnership or choose to opt out of it. Lastly, how will it affect the workers and the course of worker’s movement in Canada.
Assume that you are a CEO of a medium-sized company that needs a significant influx of cash for several expansion projects. As the CEO, you must determine whether your company should remain private or go public. Some companies postpone going public due to the unpredictability of economic and market conditions. Consider the ramifications of both alternatives. Construct an argument for and against going public. Before providing your response, review the guidelines and regulations associated with going public by visiting Small Business and the SEC located at http://www.sec.gov/info/smallbus/qasbsec.htm.
2. What do you think the current market price is for Rosetta Stone shares? Justify your valuation using both discounted cash flow and comparables (market multiples) analysis.
Apex Investment Partners was founded in 1987 by James A. Johnson and the First Analysis Corporation. In its eight-year life, the VC had raised three funds. The two first which are already closed had, together, a committed capital of around $70M. There were mainly concentrated in four areas: • • • • Telecommunication, information technology and software. Environmental and industrial productivity-related technologies. Consumer products and specialty retail. Health-care and related technologies.
3. What restructuring option – Icahn’s spin-off proposal or the company’s targeted stock proposal – will create the most value for shareholders? For creditors? For the firm’s other stakeholders?
4. LP’s of ACM would probably have a strong positive view on the ACM approach. ACM portrays a specialised expertise in technology start ups with its discontinuities based investing and due diligence in management through its structured
Market value proportions of: Debt = $1,147,200 / $4,897,200 = 23.4% Pref. Share = $1,250,000 / $4,897,200 = 25.5% Common equity = $2,500,000 / $4,897,200 = 51.1%
3. The article is about background and arguments about whether to raising debt or equity.
Ecton should go ahead with its plans of finding a suitable acquirer. This would give the original investors the greatest return on investment, as well as an acceptable exit strategy. Ecton
Q1. What are the built-in tensions with a public private equity firm? How does Blackstone 's structure attempt to reconcile them?
An issue of extensive debate has been the price at which formerly public companies should be sold to private owners. For eg. When Deutsche Telekom was privatized, the share price immediately sank dramatically. Another ex is of the group that took over British Rail in a management buyout and