Less than a year after the leveraged buyout in his own company, the managers of BW / IP International presented an attractive candidate for acquisition. To buy the target company, however, BW / IP will have to borrow more money and take on more administrative problems at the time, when his manager is already very busy. The case asks students to think about how BW / IP can convince its creditors that the acquisition is a good idea. We present two simple evaluation exercise. Also allows a careful comparison of the processes of distribution of capital in a large, low-leveraged public company, compared with a small, highly leveraged, private companies. "Hide
by Timothy A. Luehrman, Andrew D. Regan Source: Harvard Business School 16 pages. Publication Date: November 19, 1992. Prod. #: 293058-PDF-ENG