Describes the many problems facing Alison Lassiter, who is trying to help Charlie Harris arrange leveraged buyout of the company he works shrimp, a division of publicly traded companies, Katy Industries. Lassiter prepared a memorandum of discussion and analysis of the company in detail and made some preliminary analyzes of the economic transaction. Many questions remain, including: 1) What is the maximum price Harris should pay? 2) How and when it should come up with a proposal to Kathy? 3) What should be the elements of the proposal? 4) From equity funds should be raised and how much should be raised? 5) that the creditor should be treated and how? 6) How should be cut a cake? (That is, what proportion should manage to get? Equity investors? Lenders?) 7) If we assume that the deal could be pulled off, what the critical success factors be? Presents an opportunity to hone analytical skills and, more importantly, to discuss how to manage the process so that the deal is acceptable to all parties can be structured. Students may be asked to take different points of view - management, lenders -., And be prepared to discuss them "Hide
by William A. Sahlman Source: Harvard Business School 47 pages. Publication Date: October 21, 1988. Prod. #: 289019-PDF-ENG
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