Viet Duong Sybil Cheng 11/17/2011 Holmes Corp: LBO Valuation 1. Sustainability – One of Holmes Corp. major strengths is its long history of steady and predictable cash flow. Over the last five years‚ Holmes’ Net sales have grown from $41MM to $103MM which is approximately a growth rate of 151%. Over the same time frame Holmes’ net earnings have grown from $1M to $6.6M which is approximately a growth rate of 560%. This history of strong earnings means we can realistically expect stable
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Hertz A: 1. CD&R pursued Hertz for three years only to find itself facing an auction and a complicated deal. Is it worth it? • It is worth it. Because hertz is a mature company with predictable cash flows. Such acquisition provides a great opportunity to generate decent return on equity to sponsors • CD&R had access to available debt avenues to make the company grow • CD&R was able to make operating changes and improve the companies efficiency 2. What are the
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selling stock to the public. The company has realized hundreds of millions of dollars in improved financial results annually‚ but also has cut thousands of jobs as it has sought to make operations more efficient. Figure 7 provides an overview of the LBO transaction‚ including a time line of key events. Background: Hertz says it is the world’s largest general use car rental company‚ with approximately 8‚100 locations in about 145 countries. Hertz also operates an equipment rental company with about
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information obtained from various sources and Yell’s website‚ it shown that Yell has grown from the only one classified directory company in Brighton‚ UK in 1966 to be a leading international company with size of 5‚300 employees which provide an useful guidance and information for their customer in the classified advertising market in the United Kingdom‚ the United States‚ Spain‚ Chile‚ Peru and Argentina at this time. Yell create and receive their earnings by giving an opportunity for buyers to be
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DOLLARAMA LBO TO: BAIN CAPITAL FROM: ANALYST GROUP MICHAEL MALO SEBASTIEN HUBERT IVANINA MINCHEVA SUBJECT: INVESTOR RETURNS DATE: NOVEMBER 20th‚ 2004 DOLLARAMA LBO TO: BAIN CAPITAL FROM: ANALYST GROUP MICHAEL MALO SEBASTIEN HUBERT IVANINA MINCHEVA SUBJECT: INVESTOR RETURNS DATE: NOVEMBER 20th‚ 2004 TABLE OF CONTENTS INTRODUCTION 4 INDEPENDENT VALUATION OF DOLLARAMA 5 POTENTIAL IMPROVEMENTS TO DOLLARAMA OPERATIONS 11 RECOMMENDATION 17 APPENDIX 19 INTRODUCTION
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Del Monte Foods Company LBO Deal Report 1. Del Monte Foods Company (DLM or ‘the company’) is one of US ’s largest producers‚ distributors and marketers of premium quality‚ branded pet products and food products for the retail market. It is the world’s sixth largest manufacturer of preserved food‚ and the leading producer of both preserved fruit and preserved tomatoes . Its pet products segment includes brands like Meow Mix‚ Kibbles n Bits‚ Milk-Bone‚ 9Lives‚ Pup-Peroni‚ Gravy Train‚ Nature
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1. How much value do you expect to be created by operating improvements and capital structure changes envisioned by CD&R? CD&R proposed changes to the following areas. a. US RAC on-airport operating expenses: Labor per transaction‚ administrative and other costs had increased 41%‚ 65% and 30% respectively between 2000 and 2005. In addition‚ margins were not constant across locations and varied from 32% to -7%. CD&R proposed that the operating expenses could be reduced resulting in cost savings
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The Toys “R” Us LBO Background Toys "R" Us‚ Inc. is the world’s leading dedicated toy and juvenile products retailer. As of January 29‚ 2005‚ it operated 1‚499 retail stores worldwide and generated 11.1 billion in revenue. However‚ that’s a decrease of 1.9 percent from a year ago. Toys "R" Us has suffered from both downstream demand and increased competition from mass/discount channel such as Wal-Mart and Target. A group of private equity investors intends to do a leverage buyout of Toys "R"
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In 1992‚ the Rebel Yell released an article that stated that crime on campus was increasing. This was the first time that the amount of crime was finally pointed out and as the article acknowledges that students and parents needed to be aware of what occurs on the campus. This is especially important because if a student is coming from out of town‚ they should know that the resident halls have the largest amount of crime such as stealing (Raymond 1992). Many families while considering colleges are
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1.1. Valuation methodology ACC is using LBO approach for its acquisitions and desires to maintain this acquisition policy for its latest target AirThread Connections (AC). According to this approach‚ AC will be financed significantly by debt which will obviously breach leverage ratios maintained by Air Thread/ACC. ACCs plans to bring down the leverage ratio to industry standards steadily to sustainable levels between the years 2008-2012. Owing to the uneven capital structures between 2008
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