Private Equity Alert January 2009 Weil News n n n n n n n n The 2009 Edition of Best Lawyers in America named our following partners in the areas of Leveraged Buyouts‚ Private Equity Law or Private Funds Law: Christopher Aidun‚ David Duffell‚ Shukie Grossman‚ David Kreisler‚ Steven Peck‚ Charles Robins‚ Jay Tabor‚ Jeffrey Tabak‚ Doug Warner‚ Glenn West‚ James Westra and Barry Wolf Weil Gotshal advised Lehman Brothers Holdings Inc. in connection with the management buyout of Neuberger
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1. LBO funds have been notably active in the market for mergers and acquisitions (M&A) in recent years. The line between some types of hedge funds and LBO funds blurred in the last few years‚ but most hedge fund strategies remained quite distinct from the LBO investing model. For many years‚ hedge funds active in the distressed arena tried to buy defaulted or near-default bonds and then resell them weeks or months later at a profit. The blurring of the line between LBO and hedge funds began when
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search fund excepted – Extensive research • Lots of (too much?) due diligence Martin’s Dilemma • Differences between firms/funds: – Brand name/reputation – Background of partners – Deal flow strategy – Industry focus/investment strategy – Investment track record – Organizational structure (number of partners‚ offices‚ etc.) – Capital under management: today and growth of funds in the future Martin’s Dilemma Differences between firms/funds‚ cont’d • Track record: – IRR – Multiple
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Name Case Number Target HoogenFood N.V. UVA-F1497 Raider Finance Mondiale S.A. UVA-F1498 LBO Sponsor Lanza E Compagnia UVA-F1499 White Knight Alimentos Globales UVA-F1500 Bank Omni Bank PLC UVA-F1501 Bank Euroland Bank A.G. UVA-F1502 Case Structure Euroland Bank Omni Bank Financing Of E2.5b Financing Of E2.5b LBO Raider Tender offer E70/shr Owns 8.3% has E6b capital ??? Target Food Div. Chemical Div. Operates company
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Leveraged Buyout of RJR Nabisco In 1988‚ a war was launched for the control of RJR Nabisco. It ended at the end of the year when KKR won the bidding war with a $ 109 per share offer and took RJR Nabisco private. Before the details of the leveraged buyout (LBO) are discussed‚ it is important to understand what made RJR Nabisco so attractive. RJR Nabisco was a conglomerate company that was involved in mainly two industries. It had divisions in the tobacco and food industries. In the tobacco division‚ RJR
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market at an average age of 6.5 years. Different from the normal calculation‚ these disposals represented significant part in Fraikin’s regular operating activities‚ therefore should be included in the calculation of operating value. b. Leverage Buyout (LBO) Leverage buyout was an acquisition of a
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VALUATION -PROBLEM SOLVING FOR THE CASE STUDY Name Institution Instructor Course Date Question 1 Potential value creation in the transitions: 1. Use of a risk hedging financial contract‚ the swap. 2. Acquisition of an undervalued target. 3. Evading tax liability. The management under the advisory of analyst believe that the company requires to make intensive‚ heavy investments which is not feasible if the Seagate Inc. remains a public company The other capital reorganisations alternatives are
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Submitted by Benjamin T. Schultz‚ Gail Olsen & Raj K Bhutani To Dr. Susan E. Moeller Eastern Michigan University‚ Ypsilanti‚ Michigan Table of Contents I Problem Statement 3 II Analysis of Economic and Industry Data 3 II.1 What is LBO? 3 II.2 RJR and Smoking 3 III Analysis of Alternative Solutions 4 III.1 Strengths of KKR: 4 III.2 Weaknesses of KKR 5 III.3 Opportunities for KKR 5 III.4 Threats for KKR 5 III.5 Share Value: Pre-Bid offer 5 III.6 Share Value:
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Provides the opportunity for students to discuss the effects of high leverage on management decision making‚ and the differences between operating as a small subsidiary of a large conglomerate and as a free-standing company. Focuses on the role of the LBO sponsor in the management of the company‚ the role of restrictive debt covenants‚ and the effect of changes in the compensation system at the company. - See more at: http://www.iesep.com/es/o-m-scott-sons-co-leveraged-buyout-13961.html#sthash.U5XhTQSy
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Jeff was mesmerized by the discussion of the forts‚ Indians‚ and Comacheria. Talking to Jeff they could see the excitement in his eyes‚ so they told him that if he ever got the courage up to come out they would give him a job with their company‚ the Saw-Horned Cattle Company. Cattle rustling was a big problem in the region‚ and so to distinguish their cows from others they would simply saw the long-horns off rather than branding them‚ hence the name. (Haley‚ 17) This lit a fire inside of Jeff
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