This Case is about FINANCIAL ANALYSIS, FINANCIAL MANAGEMENT, MERGERS & ACQUISITIONS
PUBLICATION DATE: February 10, 2015 PRODUCT #: UV6926-HCB-ENG
This case investigates the problems involved in a private equity (PE) business’s choice to put money into the debt of a leveraged buyout condition. The evaluation has been simplified to call for just two categories of junior debt, senior debt and outstanding debt, so that pupils don’t have to possess in-depth understanding of the insolvency procedure to complete the evaluation.
The key analytic job demands pupils to compute the estimated internal rate of return for just two debt-investment strategies. This case has been educated in a second year elective class in an undergraduate class on PE, and covering PE and entrepreneurial finance. The case is suitable to be used in courses on PE, debt restructuring, advanced deal valuation, or corporate finance.