This Case is aboutÂ ACCOUNTING
PUBLICATION DATE: February 06, 2013 PRODUCT #: 113058-HCB-ENG
In the early phase of 2012, Investindustrial, a European based private equity group, openly acknowledged their intent to sell out 76.7% stake in the Ducati Motor Holding S.p.A., an iconic Italian manufacturer of sport performance bikes. The selection followed a six-year turn around during which Ducati substantially expanded its product line and returned to profitability.
Investindustrial’s team had the subsequent departure options: 1) a trade deal to an automotive buyer; 2) a secondary buy out, partial or whole, by a financial investor; 3) a record in Hong Kong. Each alternative had its advantages and disadvantages, but all needed a cautious valuation of Ducati to optimize the investors’ return on their main investment.