organizational and financial structure of the Fojtasek companies had been in flux since the spring of 1994. By March 1995‚ three different financial transactions have been proposed to streamline and restructure the firm: an outright acquisition‚ a leveraged recapitalization‚ and a hybrid transaction called “Private IPO.” Heritage Partners is interested in taking a stake in the Fojtasek Companies by proposing a“Private IPO” transaction. The paper will analyze the health of the Fojtasek companies and
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was facilitated by loan syndication. • In general‚ institutional investment in loans tended to concentrate in the leveraged segment of the market; i.e.‚ loans to non- investment-grade firms or non-rated firms with high committed or outstanding leverage including financings of LBOs. • In 2007‚ institutional investors funded 62% of primary leveraged loan issuance. That same year‚ leveraged lending represented 41% of the overall syndicated loan issuance.d Market Conditions (II) • According to Standard
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the risks that could be occurring in the future. We will try to provide some insight in these probabilities. After our study‚ we will give Mr. Bierbaum advice about the current financial review of the company‚ the possibility about an acquisition/buyout‚ the life cycle and financial hedging. Our advice will be focused on the actions that can be undertaken to have cost reductions on a long-term period. Product life cycle The product life cycle tells us within what phase(s) a company is and which
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including leveraged buyout‚ venture capital‚ and growth capital. Private Equity firm is a very viable option for us finance students as a career‚ and they also offer a competitive reward compared to other financial institution. Private Equity Strategy Below are some of the strategies commonly used by Private Equity firm as a base for their operation. The strategies we describe are used for more mature companies that already have an operating cash flow. 1. Leveraged Buyout Leveraged buyout
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Re: Seagate Technology 1. Describe the main terms of the Seagate Technology buyout? Why is Seagate undertaking this transaction? Is it necessary to divest the Veritas shares in a separate transaction? What are other alternative ways to create value? The primary contemplated terms would be to sell Seagate’s disk drive mfg assets including $765M in cash to Suez Acquisition Company controlled by Silver Lake Partners. The purchase would be financed by equity put up by Silver Lake and also by an‚
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size‚ and ability to finance the acquisition. A management-led leveraged buyout of Exotic would both be feasible and practical. Because of our high credit rating (A+)‚ we can borrow at 4.5%. We are able to meet the obligations of the payments because our global unit sales have increased over time‚ and because we have consistently been profitable. Ability to pay for the debt is not reason enough to go through with a buyout. There are significant other reasons as well; our EPS has never been
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Ragan Thermal Systems plc was founded nine years ago by brother and sister Carrington and Genevieve Ragan. The company manufactures and installs commercial heating‚ ventilation and cooling (HVAC) units. Ragan has experienced rapid growth because of a proprietary technology that increases the energy efficiency of its systems. The company is owned equally by Carrington and Genevieve. The original agreement between the siblings gave each 50‚000 shares. In the event that either wishes to sell the shares
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catch up with growth of the company. 2. Assess how each alternative addresses the family needs and key concerns of each alternative (buyout‚ leveraged recapitalization‚ private-IPO). A. Buyout : It can’t be good solution‚ because a private company doesn’t have liquidity. It means buyout fund have difficulties to make the money from a private company B. Leveraged recapitalization : As I mentioned‚ this is foremost solution if they want to solve their problems on their hands. However this is too risky
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financial results and would incur further losses in the future. One of Citigroup’s main concerns was the risk of their exposure from holding leveraged loans. Due to the increasing risks and costs associated with holding these loans‚ Citigroup approached several large investors‚ including a private equity firm and a hedge fund‚ about purchasing leveraged loans from their portfolio. Blackstone expressed interest in a portfolio that contained a total face value of $6.11 billion‚ with16 different issuers
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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 Berman and certain of its alternative asset businesses Weil Gotshal advised
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