Leveraged buyout

    IRIS RUNNING CRANE CASE STUDY Iris Running Crane, an MBA graduate candidate, is trying to choose among three different job offers in private equity sector. Her first option is Sunstorm Investment Group, which is one of the most respected buyout groups in the world. Her second option is Red Horse Partners, which is a middle-market LBO group. The third is Lepus Capital; tries to reposition itself like a turnaround expert, beginning using its own portfolio. In this study case, I will try to

CenTrust Bank Scandal CenTrust, first called Dade Federal Savings and Loan, was founded in 1934 during the Great Depression and eventually became a stalwart of the South Florida business establishment. By the early 1980s, Miami had a corporate community that any city would envy. The companies were large and growing. They contributed mightily to local causes. They virtually invented a skyline where none existed as late as the early 1980s. CenTrust Bank and David Paul gave huge sums of money and much

Company and Situation Dell was founded by Michael Dell in 1984, and made its name as a PC maker. In recent years Dell’s focus has shifted to the enterprise, and the company has made dozens of acquisitions to fill out its hardware, software and services offerings. While Dell has been profitable, the company’s move from a PC to an enterprise company has yet to translate into strong financial results, and investors have lost patience. By taking Dell private, Michael Dell hopes to move away from the

This case study is based on R.J Reynolds (RJR) 1985 financing of the $4.9 billion acquisition of Nabisco Brands Inc. To finance the acquisition, RJR proposed the issue of a preferred stock of $1.2 billion with twelve years US domestic notes of the same amount. To analyze the case there are two major components. First requirement is to examine the financing alternatives available to the company in order to assess their suitability. Secondly, identify other financing alternatives that may be suitable

Case Study: Brazos Partners and Cheddar’s Inc. Brazos Partners is a company founded by Randall S. Fojtasek, Jeff Fronterhouse, and Patrick McGee in 1999. It is a Leverage Buyout Firm that targets companies with enterprise values between $50 and $250 million, solid management, a well-defined niche and is often close to the Brazos’ Dallas home. Location is an essential part of Brazos cooperate strategic management; according to Patrick McGee Texas is the 11th largest stand alone economy in the

Ducati & Texas Pacific Group – A ”Wild Ride” Leveraged Buyout 1. What is the nature of the opportunity? Could the Ducati brand be expanded beyond motorcycles? Why or why not? TPG strategy is to invest in undervalued firms’ that usually have been poorly managed. The investments are made in privately hold firms that are either unlisted from the beginning or that is being delisted from the stock exchange under the LBO process. TPG wants to invest in firms with a “healthy” basis but that are experience

Ducati & Texas Pacific Group – A ”Wild Ride” Leveraged Buyout 1. What is the nature of the opportunity? Could the Ducati brand be expanded beyond motorcycles? Why or why not? TPG strategy is to invest in undervalued firms’ that usually have been poorly managed. The investments are made in privately hold firms that are either unlisted from the beginning or that is being delisted from the stock exchange under the LBO process. TPG wants to invest in firms with a “healthy” basis but that are experience

1988 from the leveraged buyout of RJR Nabisco, Inc. by Kohlberg Kravis Roberts & Co. for $24.9 billion. It was the largest takeover in Wall Street history. It was co-written by Bryan Burrough and John Helyar, both journalists for the Wall Street Journal. They wrote a series of articles about the takeover attempt. In 1989, they obtained additional information for the book by doing over 100 interviews. They interviewed all the major people

£525million of debt on to the club itself. This was problematic because it meant that money otherwise could be used to acquire top talents, improve training facilities, or towards the club’s CSR activities would be used to pay back Glazer’s debt. The leveraged buyout of the club was directly against the interests of the fans who are the most important stakeholder.

Question 1: Is Congoleum a good LBO candidate? In other words, does this company have a lot of debt capacity? To judge if a company is a good LBO candidate the following are very important factors: low levels of debt in the target, stable cash flows, excess cash on-hand, assets that can be used as collateral to raise debt and no major capital requirements to keep the business running on an on-going basis. Congoleum is an ideal LBO candidate because: 1. Low level of debt – estimated long term debt