Seagate Buyout Case Group 5 Heng Qiao Eduardo Pereira Wei Wang Yanan Pei Introduction of the companies Seagate Technology‚ Inc. is one of the world’s largest manufacturers of computer disk drives and related data storage devices with approximately $6.5 billion in annual revenues. In early November 1999‚ Luczo‚ president and CEO of Seagate considered a restructuring proposal with Silver Lake‚ a successful private equity firm that is specified in technology business investing
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Case 9 & 10 Analysis Seagate Technology Buyout The Hertz Corporation Advanced Corporate Finance MW 2:00-3:15 PM Question 1 On page 1‚ the “value-gap” is two-fold. It signifies an under-valuation of Seagate’s core disk drive operating assets due to unfavorable public market investor preferences. Furthermore‚ the value of the Veritas share price has caused the Veritas stake to far outweigh the value of Seagate’s stand-alone market capitalization. Since Seagate does not own at least 80%
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External There are three major external environmental influences that have had a major impact on business over the past three to five years. Data collected from six environments‚ including demographics‚ technology‚ soci-cultural‚ economic‚ political-legal‚ and global identify these three “big deltas”. The information gathered illustrates that the three big deltas are increasing interconnectivity‚ the changing face of America‚ and changing dominant world power. Unless indicated‚ all data points have
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megabyte of disk storage has gone done 40% per year from 1980-1995. Seagate believes that in order to stay competitive they must aggressively enhance product offerings and reduce prices. They also believe that in addition to that‚ they need to provide timely introductions and reduce production costs. However‚ the surging global demand in this industry is causing some facilities to run at full capacity very frequently‚ so Seagate needs to tailor its manufacturing strategy for these new products they’re
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Seagate Technology Profile: Real-Time Response to Demand John A McClain Capella University MBA 6127 Effective Global Strategic Resourcing Abstract Seagate Technology‚ is one of the world’s largest manufacturers of computer disk drives and related data storage devices‚ open its information super highway up to achieve a holistic global supply chain. By giving access to their operating system to both suppliers and customers‚ the company was able to reduce inventory and lead times to corner
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Seagate Case Study Effective Global Strategic Resourcing Analysis The key to a successful supply chain and its integration with customers and supplies lies in its ability to communicate wants‚ needs‚ and realities. Seagate has taken communication to its highest level by creating visibility at every level of its supply chain. This visibility is the Holy Grail for Seagate because it is a form of communication that breeds trust and transparency throughout every level of its supply chain.
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(Table of Contents) 1. 2. 3.LBO 4.TXU 5. LBO 6. (Overview of Leveraged Buyouts) (Mechanics of an LBO Analysis) (LBO Best Practices) (TXU Case Study) (LBO Modeling) (Homework Assignment) (Appendix) 1. Overview of Leveraged Buyouts (LBO) Overview of Leveraged Buyouts An LBO is the acquisition of a company or division of a company using debt for a majority of the purchase price and equity for the remainder. The buyer (the LBO Sponsor or Equity Sponsor) borrows the debt portion of
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FOR A LEVERAGE BUYOUT? 2. WHY WOULD INSTITUTIONAL INVESTORS BE WILLING TO FINANCE A LEVERAGE BUYOUT WITH THE CAPITAL STRUCTURE PROPOSED? 3. WHAT RETURN WOULD BE APPROPRIATE FOR THE INSTITUTIONAL INVESTORS ON AN INVESTMENT WITH THIS RISK LEVEL? WHAT RETURN WILL THE INSTITUTIONAL INVESTORS REALIZE IF THEIR TIME HORIZON FOR THE INVESTMENT IS 5 YEARS AND THE PROJECTIONS OF EX. #13 ARE REALIZED? 4. WHERE WILL THE VALUE FOR THE 50% ACQUISITION PREMIUM COME FROM IN THE PROPOSED BUYOUT? 5. WHAT IS THE
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The Leveraged Buyout of RJR Nabisco In 1988‚ a war was launched for the control of RJR Nabisco. It ended at the end of the year when KKR won the bidding war with a $ 109 per share offer and took RJR Nabisco private. Before the details of the leveraged buyout (LBO) are discussed‚ it is important to understand what made RJR Nabisco so attractive. RJR Nabisco was a conglomerate company that was involved in mainly two industries. It had divisions in the tobacco and food industries. In the tobacco division
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Seagate Technology* A case (with teaching note) on the role of senior business leaders in driving work/life cultural change. Phyllis Siegel‚ Rutgers the State University of New Jersey The Wharton Work/Life Roundtable A Division of the Wharton Work/Life Integration Project University of Pennsylvania * This research was funded in part by a Sloan Foundation Grant #B1999-76. A note of special gratitude goes to: Alice Campbell‚ Scott Cooper‚ Debbie Hufnagel‚ and Ellen Ernst Kossek for
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