Corporate Finance Case Study
ROBERTO Ristorante
1- In a few phrases, describe the situation of the Roberto and Chez Léon chain.
2- Without the Chez Léon chain, would you think that the Roberto chain has a positive, nil or negative value?
3- What are the foundations of value for Chez Léon?
4- Given the objectives of the Italian State, would you recommend that the sale be completed: a. On an open bid basis? b. Via a private negotiation, selecting the most obvious candidates? Why?
5- Once you have selected the procedure, is it necessary to set a minimum price for the Roberto group below which, to safeguard the interests of the Italian State, it will not sell its stake in the group? Why?
6- Would you recommend to the Italian State that: c. Prior to the disposal, it performs an audit of the Roberto group and discloses the findings to potential buyers? d. Or that it waits until negotiations with the buyer have been completed before the latter performs due diligence procedures, adding a provision to the contract under which the price will be revised based on the findings of this audit. e. Or that no audit be performed before, during or after the disposal? Why?
7- Given the pronounced differences between the Roberto and Chez Léon chains and the difficulty of finding a buyer prepared to acquire both businesses, would it be preferable to arrange a sale by compartment or as one block, leaving the buyers to form consortiums and divide the businesses between them? Why?
8- Since Olivetti wants to sell its 45% stake in Chez Léon, would it be in the interest of the Italian State to buy this stake before the group is put on the market so as to present a streamlined structure? Or would it be preferable to leave things as they are? Why?
TABLE OF CONTENTS
1. Executive summary In the above case study Roberto Group incepted 30 years ago by IRI one of the largest holding companies
1- In a few phrases, describe the situation of the Roberto and Chez Léon chain.
2- Without the Chez Léon chain, would you think that the Roberto chain has a positive, nil or negative value?
3- What are the foundations of value for Chez Léon?
4- Given the objectives of the Italian State, would you recommend that the sale be completed: a. On an open bid basis? b. Via a private negotiation, selecting the most obvious candidates? Why?
5- Once you have selected the procedure, is it necessary to set a minimum price for the Roberto group below which, to safeguard the interests of the Italian State, it will not sell its stake in the group? Why?
6- Would you recommend to the Italian State that: c. Prior to the disposal, it performs an audit of the Roberto group and discloses the findings to potential buyers? d. Or that it waits until negotiations with the buyer have been completed before the latter performs due diligence procedures, adding a provision to the contract under which the price will be revised based on the findings of this audit. e. Or that no audit be performed before, during or after the disposal? Why?
7- Given the pronounced differences between the Roberto and Chez Léon chains and the difficulty of finding a buyer prepared to acquire both businesses, would it be preferable to arrange a sale by compartment or as one block, leaving the buyers to form consortiums and divide the businesses between them? Why?
8- Since Olivetti wants to sell its 45% stake in Chez Léon, would it be in the interest of the Italian State to buy this stake before the group is put on the market so as to present a streamlined structure? Or would it be preferable to leave things as they are? Why?
TABLE OF CONTENTS
1. Executive summary In the above case study Roberto Group incepted 30 years ago by IRI one of the largest holding companies