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Palamon Capital Partners/Teamsystem

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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…

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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

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