IMD-3-2299 © 2012
Leleux, Benoit F.; Galeazzi, Michel L.; Megally, Esmeralda.
On a apathetic and cold London early morning, Doughty Hanson (DH) financial investment committee was discussing the prospects of the company's Tumi financial investment. At stake was the meaning of the correct exit method for the high-end baggage business DH had actually gotten in 2004 in a secondary buyout, a business that now produced some US$ 330 million in sales. For DH, the story began in 2003; throughout the subsequent 8 years, DH and the Tumi management group attained a three-fold development in sales and close to a four-fold boost in EBITDA, an effort highly supported by the DH Value Enhancement Group (VEG), a group of 5 internal functional specialists.
On December 13, 2011 Tumi revealed to the world that it was considering an IPO. An IPO, a trade sale to a rival or an industrial purchaser looking to diversify into baggage devices, a tertiary personal equity offer - the scheme of alternatives was perfect.
Tumi And The Doughty Hanson Value Enhancement Group (VEG) Case Study Solution
Subjects: Private equity; Buyouts; Active ownership; Value creation; Luggage; Travel equipment; Restructuring; Growth strategy; Managing growth; IPO; Trade sale
Settings: USA; United Kingdom; Global ; Travel equipment and accessories; Luggage ; $330 million sales ; 2004-2012
Related Case Solutions & Analyses:
Miami Car Care Center Inc.
Amazon Incorporation
Outreach Networks: First Venture Round
@Hoc: Leveraging Israeli Technology in the United States
Jiuding Capital: Private Equity Firm with Chinese Characteristics (B)
Seeing Profitability Through a Banking Lens
MacroMarkets LLC
Note: Regulation of Hedge Fund Managers in the U.K. Before and After the Global Financial Crisis
Post-Crisis Compensation at Credit Suisse (A), Portuguese Version
Doc’s Barbershop
