price that the Hertz management will agree upon. If they don’t do this‚ then Hertz will just go through with the IPO. This could lead to a driven up price‚ since the bidding groups will do whatever it takes to win the bid. Hertz is an interesting LBO candidate. After evaluating Hertz’s company history and financial statements‚ we believe that they would be a prime target for a leveraged buyout. In the United States‚ Hertz is a top three competitor in the rental car market in terms of revenues‚ mainly
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opportunities‚ which is independent of its capital structure. (Miller-Modigliani‚ 1958 | Junk bonds have provide vitality in the market and have aided in the development of the preference forLeveraged Buyouts (LBOs) (Chew‚ 2001). The new characteristics in corporate governance followed the LBOs of large firms. Chew (2001) states strip financing as one. | Miller-Modigliani
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FTX4086F ALTERNATIVE INVESTMENTS TIME: 180 MINUTES 4 June 2012 MARKS: 140 PLEASE READ THE FOLLOWING INSTRUCTIONS CAREFULLY: 1. PLEASE DO NOT TURN THIS PAGE OVER UNTIL INSTRUCTED TO DO SO. 2. Ensure that your name and student number appears on the cover of each Answer Book. Please complete this before the test commences. 3. Each Section is to be answered in a separate answer book and the answer book must be clearly marked. 4. All Answers must be done in ink‚
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The Canada Pension Plan Investment Board The main concern of the Senior Vice President is whether CPPIB will be able to sustain its positive results with its current investment strategy and the long term nature of the pension plan. A shift towards an active strategy concentrated on Private and Alternative Investments has certainly paid off since its implementation. However‚ the pension plan has reached somewhat of a roadblock considering the recent loss it has suffered. The million dollar question
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Private equity‚ pecuniary logic and enterprise restructuring Private equity firms‚ which in recent decades have become an important avenue for financial transactions in the US and UK markets‚ are being hard hit by the sub-prime crisis as they are unable to source their funding from investors. The resulting credit crunch and financial turmoil may also pose a threat to developing-country financial markets where they have become significant investors‚ particularly in Asia. The danger‚ according to
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order to avoid taxes‚ Veritas would buy Seagate and spin off the Seagate disk business to Veritas shareholders. 2. What are the benefits of leveraged buyouts? Is the rigid disk drive industry conducive to a leveraged buyout? A positive aspect of LBOs is that poorly managed firms can undergo valuable corporate reformation when they go private. By changing their corporate structure‚ replacing executive staff‚ unnecessary business units‚ and controlling costs‚ a company can revitalize itself and
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Case Study Preparation Questions Valuing a Cross-Border LBO: Bidding on the Yell Group Shiyu Liu 1. Include a paragraph to summarize the case. A group of private equity investors – Apax Partner and Hick Muse are two private equity firms that are interested in buying the Yell Group. Yell Group comprises of two businesses that operated in both the United States and the United Kingdom. Yellow Pages is a classified directory business in the UK while Yellow Book is an independent directory business
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CHAPTER – 1 THE RESEARCH METHODOLOGY 1.1 Introduction 1.2 Title of the Problem 1.3 Review of literature 1.4 Objectives of the Study 1.5 Data Collection 1.6 Selection of Samples 1.7 Period of the Study 1.8 Hypothesis of the Study 1.9 Tools of Analysis (A) Ratio Analysis (B) Statistical Techniques • Average • Index Number • The Standard Deviation • Student – T – Test 1.10 Significance of the Study 1.11 Outline of Chapter Plan 1.12 Limitations of the
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Executive summary 2 PART 1: Valuation of the Yell Group 3 LBO Potential 3 Financial structure 3 Ownership structure 4 Potential cultural differences 4 Valuation 4 PART 2 : Readings 10 Bond prices and takeovers 10 Abnormal Bond Returns 10 Impact on bond returns of different legal standards in case of cross-border acquisitions 11 Sources of financing takeovers 11 References 14 Executive summary The Yell group is consists of BT Yellow Book Yellow Pages USA and
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4 May‚ 2013 Investment Banking Benchmark Bond Offering Case Belgacom The Inaugural Institutional Benchmark Bond Offering Alizée Hardy Orea Lika Rossella Miccolis Yasmine Nouri Margaux Vandenbossche For Lecturer Yassine Boudghene Assistant Quentin Bodart Case context § In 2006 Belgacom acquisition of the remaining 25% stake in Proximus that Vodafone owned. § Consideration was EUR 2bn § Financed by cash and EUR 1.8bn “1y bridge loan facility” § The debt is taken out by
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