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Tad O Malley: The Investment Conundrum

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Tad O’Malley: The Investment Conundrum

By David Birulin

The Empire Investment Group was a top-tier buy-out firm within the private equity community. Tad O’Malley, a second-year student at the Harvard Business School, accepted a position at Empire Investment Group.
Ted received a call from his boss, Townsend “Sandy” Beech, the head of his four-person deal team and founding member of the firm. Sandy requested Tad, on a Friday afternoon, to review three presentations for possible buyout targets. Tad was to make a presentation at the partners’ meeting on Monday morning, recommending only one (1) investment and detailing the strengths and weaknesses of all three.
The Empire Investment Group had a strong “brand name” and …show more content…

firms had established international offices from which to deploy money. “Major U.S. LBO operations like “Carlyle, Blackstone, TPG, KKR, and Bain Capital – all had several overseas offices by 2005.” Empire felt the pressure to compete; “by 2005, the question was not whether a large private equity firm had an international operation but what international deals it was doing.
As an industry, marketing was word-of-mouth and targeted. Empire has an excellent team proactively researching companies from public records who they believe meet their financial objectives. The sales cycle can be long, but the returns are typically high. The basic approach is to build relationships with government agencies, company leadership, and build a business case to help companies achieve their financial goals.
Empire’s product is their knowledge and ability to restructure companies, fund improvements or reduce expenses to increase EBITDA with very little of their own cash. Empire may be a major investor or purchase the company outright, but their objective is to find a company whereby they can achieve an ownership position with very little cash and over a 3 to 5 year period, sell out generating very high internal rate of returns.
The three companies Tad is reviewing are Coming Home Funeral Services, 3F AG, and Gurgaon Manufacturing, LTD.
Coming Home Funeral Services is located in the United Kingdom and “was the largest operator of funeral

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