Subject: Palamon Capital Partners Details: I. Palamon Capital Partners/TeamSystem S.p.A. 1. What is private-equity investing? Who participates in it and why? How is Palamon positioned in the industry? 2. How does private-equity investing compare with public-market investing? What are the similarities and differences between the two? 3. Why is Palamon interested in TeamSystem? Does it fit with Palamon’s investment strategy? 4. How much is 51% of TeamSystem’s common equity worth? Use both
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Palamon Capital Partners/TeamSystem S.P.A. 1. Valuation of TeamSystem S.P.A. using Free-Cash-Flow-to-Equity Model (FCFE) (1) Calculate Free cash flow to equity per year: FCFE = NI – (CAPX – DEPR) –NWC + Net Borrowing (2) Discount Rate / Equity Rate: Elson estimated discount rate to be 14%. (Source: Elson believed that a 14 percent discount rate would appropriately capture the risk of the cash flows.) (3) Present Value: Note: the company is expected to grow by 6% forever since
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Rev. Feb. 12‚ 2014 PALAMON CAPITAL PARTNERS/TEAMSYSTEM S.P.A. We want to make money by investing in change. —Louis Elson‚ Managing Partner‚ Palamon In February 2000‚ Louis Elson looked over the London skyline and reflected on the international private equity industry and the investment processes that would be necessary for success in this increasingly competitive field. Elson‚ a managing partner of the UK-based private equity firm Palamon Capital Partners‚ was specifically considering
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Evaluating and Acquiring TeamSystem S.p.A. Private equity firm‚ Palamon Capital specializes in managing‚ funding‚ and developing small to mid-sized companies into public ownership. Palamon’s strategy is to buy a controlling stake in an up and coming company for 10 – 50 million EUROS grow the business‚ and implement an exit strategy. As the private equity market in Europe becomes more cut- throat and competitive‚ Palamon Capital‚ a private equity company Based in the UK is looking to diversify and
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Palamon Capital Partners is a private equity partnership. We invest throughout Europe in service-orientated businesses with high growth potential. With 1.1 billion of funds under management‚ we are backed by some of the biggest investment institutions in the world. We have three major objectives when making an investment: to provide sufficient funds and time to allow the business to reach its full potential; to support and help entrepreneurs build their companies; and to enable our investors
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BACKGROUND & PROPOSAL In April of 1992‚ a movie industry analyst name Mr. David Davis of Paul Kegan Associates‚ Inc. was approached with an interesting and fresh business idea. The proposal was to create a new investment group‚ Arundel Partners‚ that would exist solely for the purpose of purchasing sequel rights to motion pictures produced by major U.S. movie studios. The proposal was unusual in that studios rarely sold rights to sequels prior to 1992‚ and interesting in the sense that it did
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Why This is an Attractive Project The Arundel Partners’ believe that they can make money on this project as it allows them to capitalize on the idiosyncratic risk of the motion picture business. Producing and distributing motion picture films is a risky business due to the uncertainty of moviegoers’ tastes and a studio never knows if they have a blockbuster on their hands until after the movie has started production or even later after it has been released. The financial resources of even the largest
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Buysse & Partners – General Manager/CEO Plastiekbouw Peeters – Competency Questions 13 GROWER 1. Where in your career have you been truly tested in terms of implementing a finance strategy or business plan (particularly within a high growth or business transformation scenario)? Please describe your role in building the finance capability to support that growth or change. What were the obstacles you faced during the implementation phase and how were they dealt with? What were the key challenges
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kinds of reasons. Helen the CEO of the firm’s mission is to gain all the best employees in her firm to maintain her firm in top-list of their competitors list. However‚ in recent years they are loosing those employees. Forexample‚ as she states in the case‚ “Helen pondered the point. "Well‚ that’s true enough: Pat Dougherty moved to Ireland ’for family reasons.’ Irena Milkovic decided to go solo -- I’m still trying to figure that one out. And now Tom‚ to a partnership at a big traditional firm." She
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Pinnacle Financial Partners Inc.‚ was incorporated in February of 2000. Pinnacle Financial Partners is headquartered in Nashville‚ Tennessee. It serves it purpose as a community bank mostly in the urban markets. The Chairman of the Board is Robert A. McCabe and the Chief Executive Officer is M. Terry Turner. Some of the urban markets Pinnacle caters to include these cities: Memphis‚ Knoxville‚ and Chattanooga. Operating through its subsidiary known as Pinnacle Bank‚ it is known for its debit and
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