1. What is Brazos’ investment strategy? Does it seem well suited for its position as a first-time fund? How do you assess the merits of the GTT transaction? Brazos’ investment strategy emphasizes buyouts of mid-size companies that show predictable cash flows‚ have good management teams in place‚ have well-developed niche markets‚ and are located in Texas and the Southwest. This strategy suits its position as a first-time fund because this geographic area is underserved by LBO firms. Additionally
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business‚ one that was not common‚ let alone favored by many. Although these two tycoons had opposite approaches in the business world‚ both were equally effective in their own way. Not only did these two entrepreneurs contribute to one of the largest buyouts on Wall Street in 1988‚ but also they did so in their own individual styles. Upon entering the business world‚ Ross Johnson portrayed the role of a very efficient and respectable entrepreneur. As stated in the early chapters of Barbarians at
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successful‚ CIC and Calyon‚ two French banks‚ granted Fraikin a bridge loan on condition that the acquirers would refinance the loan within the year. In March 2004‚ Gerony‚ the CFO of Fraikin were hesitated about three financing alternatives‚ leverage buyout‚ assets-backed loan‚ and securitization‚ which would enable Fraikin to repay this large bridge loan at cost-efficient way. Calculations Notice One of the main incomes of Fraikin was the disposal revenue of the trucks‚ which were sold on the second-hand
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In 1987‚ a bidding war ensued between several financial firms to acquire RJR Nabisco. Finally‚ the private equity takeover firm‚ Kohlberg Kravis and Roberts & Co (commonly referred to as KKR) was responsible for the 1988 leveraged buyout of RJR Nabisco. This was documented in several articles in The Wall Street Journal by Bryan Burrough and John Helyar. These articles were later used as the basis of a bestselling book‚ Barbarians at the Gate: The Fall of RJR Nabisco‚ and then into a made-for-TV film
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Investment Banking Interview Guide Access the Rest of the Interview Guide Investment Banking Interview Guide‚ Advanced LBO Model – Quiz Questions Answers in bold. Table of Contents: • • • Types of Debt and Financing Methods Financial Statement Adjustments and Debt Schedules Calculating Returns Types of Debt and Financing Methods 1. All of the following types of debt are typically “floating-rate” instruments used to finance an LBO EXCEPT: a. Subordinated Notes b. Term Loan A c. Term Loan B d. Revolver
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is an independent directory business in the USA. In order to reduce the leverage‚ British Telecom which own these two businesses currently is thinking deeply over a sale. In the same while‚ Yellow Apax Partner and Hick Muse must value the leveraged buyout of a Yellow Pages business. In the process‚ they must solve with problems of how to conduct valuations of cross-border business involved in a LBO. The case analyzes the economics and incentives of carried interest and compares with Capital Cash Flow
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than before and it is venturing more. This is after a turnaround in our fortunes. You can remember in 1990 when the chain based in Dallas was sinking after its acquisition by Accor S.A. of France from Kohlberg Kravis Roberts & Company‚ the leveraged buyout firm‚ for $2.3 billion. Again in 1993‚ we lost $40 million. However‚ we are standing tall today for turnaround. In 1996 after the big blow‚ the company made modest profit of $75 million before taxes but this year the company expects $ 100 million
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little existing debt and an undervalued stock price become the target for a leveraged buyout. RJR and Smoking RJR Nabisco was considered by many to be undervalued in 1988. At that time there was increasing public pressure to regulate tobacco more stringently‚ as well as more and more data coming to the fore describing the health risks inherit in using tobacco products. In the years immediately preceding the buyout of RJR Nabisco‚ there were several prevalent news stories that painted a very poor
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Case Study RJR Nabisco Fair Value Per Share Jacob Dobrovolny November 18‚ 2014 Executive Summary The RJR Nabisco case study was used to implement concepts that I have learned in class during the semester and apply it to the real world. The Nabisco case allowed me to develop my skills by using an Excel Worksheet‚ understanding how to calculate the fair value price per share‚ and determining the fair value price per share by changing the tax rate and growth rate. First
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great deal of brand equity worldwide; especially in regards to the airport services they provide. All of this makes Hertz an ideal candidate for a leveraged buyout. The interesting aspect to this case is how the dual-track process was structured. Ford must have known that their subsidiary would have been a prime target for a leveraged buyout and gained enough confidence to put the pressure of the IPO option as an incentive for potential investors to move quickly. However‚ even if no investors emerged
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