In February 1991, the leaders of this multinational publishing company specializing offered to private companies in the leveraged buyout (LBO). In addition to the usual interesting features of a typical LBO, the deal was first expressed in ECU, and one of the few in which managers, provided that all equity financing. Problems for students to appreciate and evaluate the attractiveness of the deal with the seller's perspective, the senior lender, mezzanine lender and equity investor / manager. The case can be used to (1) exercise the skills of students in the assessment of a highly leveraged company, (2) to show how the structuring of the transaction can mitigate potential problems in the agency, and (3) to study the problems and possible solutions related to the financing of global firms.
This Darden study. "Hide
by Robert F. Bruner Source: Darden School of Business 24 pages. Publication Date: March 24, 1993. Prod. #: UV0247-PDF-ENG
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