commitment within two weeks. The contemplated transaction entailed a highly-leveraged acquisition of the target. The tasks for the student are to value the target firm and projected synergies‚ assess the credit worthiness of the target (i.e.‚ its ability to bear the high debt)‚ and critically evaluate the general design of the transaction. This case was developed to support the following teaching objectives: Profile the highly leveraged acquisition and its financial structure. The particular perspective
Premium Debt Internal rate of return
INTRODUCTION Financial Services basically mean all those kinds of services provided in financial terms where the essential commodity is money. These services include: leasing‚ hire purchase‚ consumer credit‚ investment banking‚ commercial banking‚ venture capital‚ insurance‚ credit rating‚ bill discounting‚ and mutual funds ‚ stock broking‚ housing finance‚ vehicle finance‚ mortgages and car loans‚ factoring among other things. Various entities that provide these services are
Premium Lease Leasing Finance lease
There have been six merger waves in the historical mergers. Yong Rin (2011) contends that the first four merger waves were centered in the U.S. while the fifth and the sixth involved Europe and Asia. These six merger waves shared common features that they all occurred in cyclical patterns and ended with a stock market crash. What follows is the detail of each merger wave. First wave – 1897 to 1904 The first merger wave took place after the depression of 1883‚ peaked in 1899 and lasted until 1904
Premium Sherman Antitrust Act Mergers and acquisitions Wall Street Crash of 1929
Marriott International would have only modest debt after the restructuring. The bond indenture was felt not to preclude such a transfer of assets and debt. Known as event risk to bondholders‚ there were numerous cases of this in the 1980s with the leveraged buyout movement. Bondholder wealth was expropriated in favor of equityholders‚ and the Marriott restructuring was felt to be
Premium Balance sheet Stock Asset
Are the Dis~inc~ians be~:ween Debt and ;Equity Disappearing? An Overview Richard W. Kopcke and Eric S. Rosengren* During the 1980s‚ the proportion of business assets financed by debt exceeded that of any other period since World War II. Although much of this leverage accommodated new investment‚ during the last half of the decade corporations also replaced more than one-sixth of their outstanding stock with debt securities. Because of this surge in leverage‚ many analysts and policymakers are
Premium Debt Finance Corporate finance
Death is not only a physical process‚ but a social and spiritual paradigm infused by a culture’s specific ‘beliefs‚ emotions and activities which give it its distinctive character’ (Hertz 1907‚ p. 197). Facing another culture’s beliefs around death can be confronting‚ often creating ethnocentric reactions and cultural misconceptions. Comparing American and Berawan death practices highlights how these rites‚ and the spiritual beliefs underlying them‚ can appear horrifying when viewed only from the
Free Death Soul Burial
The Global Financial Crisis in 2007–2008 is considered as the worst financial crisis since the Great Depression of the 1930s. It was originally caused by the subprime credit crisis (also known as sub-prime mortgage crisis)‚ which is the surge in default by the U.S. sub-prime credit industry‚ the credit crunch began in the summer of 2007 caused by the international financial market shock‚ panic and crises. Around the world stock markets have fallen‚ large financial institutions have collapsed or been
Premium Subprime mortgage crisis Bank
Conceptual Physics Hewitt Vibrations and Waves 1) A wiggle in time is a A) vibration. B) wave. C) both D) neither Answer: A Diff: 1 Topic: Vibrations and Waves 2) A common source of wave motion is a A) wave pattern. B) harmonic object. C) vibrating object. D) region of variable high and low pressure. E) none of these Answer: C Diff: 1 Topic: Vibrations
Premium Wavelength Electromagnetic radiation Wave
Financing Change PRIVATE EQUITY DEMYSTIFIED An explanatory guide John Gilligan and Mike Wright Financing Change An initiative from the ICAEW Corporate Finance Faculty This is the first report to be published under Financing Change‚ the thought leadership programme of the ICAEW Corporate Finance Faculty. The faculty is the world’s largest network of professionals involved in corporate finance and counts accountants‚ lawyers‚ bankers‚ other practitioners and people in business among its members
Premium Private equity Venture capital Investment
Performance Measurement for Private Equity a) Summary statistics for venture capital and buyout returns: Histograms of returns: The return distribution of venture capital has a kurtosis of 23.25 and a skewness of 3.63‚ which means it is leptokurtic and skews to the right. It is not close to normal distribution. Mainly due to the high returns in late 1990s during the "Dot-Com" bubble. The return distribution buyouts have a kurtosis of 2.14 and a skewness of -0.48‚ which close to 3 and 0‚ respectively
Premium Dot-com bubble Venture capital Standard deviation