IMD-3-2047 © 2009
Chakravarthy, Bala; Leleux, Benoit F.; Lachowitz, Jonathan
Prior to any offer is completed, an info event and analysis procedure called due diligence is doned to evaluate both the future benefit of the possible disadvantage and the possible financial investment.
Carlyle’s due diligence procedure in evaluating the AZ-Electronic Materials (AZ-EM) offer was normal of its extensive technique. The due diligence procedure was substantially contracted out, with outdoors professionals worked with in vital management and functional locations and offered extremely certain guidelines by the personal equity group.
The due diligence doned to examine AZ-EM was especially extensive since the offer was a carve-out where the accounting and functional records had actually to be disentangled from those of the moms and dad company (Clariant). Knowing goals: Buyout, due diligence, handling shift, turn-around management, take advantage of, rewards, restructuring.
Subjects: Private equity; Buyout; Leverage; Turnaround; Incentive structures: Chemical industry
Settings: Speciality Chemicals; Switzerland ; Mkt Cap; Electronics : CHF 500 million ; 2004-2009