Orhan Sertdemirel Ducati Case Study
Ducati Case Study
Investindustrial Exits Ducati
At the begining of 2012, Investindustrial openly introduced their intention to market their 76.7% stake in Ducati Motor Holding, an legendary Italian producer of sport performance motorcycles.
The choice adopted a six-year turnaround throughout which Ducati came back to profitability and considerably broadened its products. Options
Investindustrial 's team had the next exit options
IPO in Hong Kong
Trade sale to an industry participant from the motorcycle or automative sector
Trade sale to another financial investor
IPO in Hong Kong
Pros
Increase in share price
Takes 6-9 months to execute an IPO
Ducati’s flotation is succesfull
HKEX became the biggest IPO market by value in 2009-2010
Access to chinese investors, it may increases liquidity
Succesfull commercial in Asian
Makerke
Cons
Contraction due to
European sovereign debt crisis. Several companies lost their momentum in 2007
Trade Sale to an Industry
Participant
Pros
Access to capital for future growth
Geographical advantage
Create technological and cost synergies
Offering highest price for
Ducati instead of brand value Cons
Potential acquirers may interested in a controlling state to have operational control and access to cash flows
Potential Trade Buyers
Volkswagen
BMW Group
Daimler
Harley-Davidson
Other Western motorcyle companies
Trade Sale to Another Financial Investor
Pros
Strong financial supporting such as Aabar
Investments.
Raising capital
Cons
Second round of a financial partner is a risky, may cause overleveraged Ducati’s unique culture more important than revenues. Assesment of Ducati’s
Performance(2006-2011)
According to;
Economic results
Economic ratios
Financial results
Firm’s Valuation
Ducati brand has a an intangible asset with indefinite uselful life.
Existed on the market succesfully more than 80 years with strong brand loyalty.
Product ranges and
Investindustrial Exits Ducati
At the begining of 2012, Investindustrial openly introduced their intention to market their 76.7% stake in Ducati Motor Holding, an legendary Italian producer of sport performance motorcycles.
The choice adopted a six-year turnaround throughout which Ducati came back to profitability and considerably broadened its products. Options
Investindustrial 's team had the next exit options
IPO in Hong Kong
Trade sale to an industry participant from the motorcycle or automative sector
Trade sale to another financial investor
IPO in Hong Kong
Pros
Increase in share price
Takes 6-9 months to execute an IPO
Ducati’s flotation is succesfull
HKEX became the biggest IPO market by value in 2009-2010
Access to chinese investors, it may increases liquidity
Succesfull commercial in Asian
Makerke
Cons
Contraction due to
European sovereign debt crisis. Several companies lost their momentum in 2007
Trade Sale to an Industry
Participant
Pros
Access to capital for future growth
Geographical advantage
Create technological and cost synergies
Offering highest price for
Ducati instead of brand value Cons
Potential acquirers may interested in a controlling state to have operational control and access to cash flows
Potential Trade Buyers
Volkswagen
BMW Group
Daimler
Harley-Davidson
Other Western motorcyle companies
Trade Sale to Another Financial Investor
Pros
Strong financial supporting such as Aabar
Investments.
Raising capital
Cons
Second round of a financial partner is a risky, may cause overleveraged Ducati’s unique culture more important than revenues. Assesment of Ducati’s
Performance(2006-2011)
According to;
Economic results
Economic ratios
Financial results
Firm’s Valuation
Ducati brand has a an intangible asset with indefinite uselful life.
Existed on the market succesfully more than 80 years with strong brand loyalty.
Product ranges and
References: http:// www.hbs.edu/faculty/Pages/item.aspx?num=4 4181