Ducati & Texas Pacific Group – A ”Wild Ride” Leveraged Buyout 1. What is the nature of the opportunity? Could the Ducati brand be expanded beyond motorcycles? Why or why not? TPG strategy is to invest in undervalued firms’ that usually have been poorly managed. The investments are made in privately hold firms that are either unlisted from the beginning or that is being delisted from the stock exchange under the LBO process. TPG wants to invest in firms with a “healthy” basis but that are experience
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Harvard Business Case: Ducati Introduction After the introduction of Federico Minoli‚ Ducati has transformed from a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturers in the world. But this is not enough for Minoli‚ who currently considers entering the Harley Davidson niche: introducing a Ducati cruiser. However‚ according to the analysis below – prepared using some basic strategic questions - this would not be a very wise
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Ducati is looking to continue to drive growth by taking market share from current competitor Harley Davison. The firm plans to attack the market niche of Harley Davison with the Ducati interpretation of its cruiser. This is a misguided way to drive sustainable growth in the long term. Harley Davison is a major American motorcycle manufacturer‚ and dominated the U.S. heavy weight motorcycle market. In 2000m Harley produced 204‚500 motorcycles a 15.5% increases over 1999. Relative to other major
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In 1926 Antonio Cavalieri Ducati and his three sons‚ Adriano‚ Marcello‚ and Bruno Cavalieri Ducati; founded Societa Scientifica Radio Brevetti Ducati in Bologna to produce vacuum tubes‚ condensers and other radio components‚ becoming successful enough by 1935 to construct a new factory in the Borgo Panigale area of the city. Production was maintained during World War II‚ despite the Ducati factory being a repeated target for Allied bombing. Ducati Factory Ducati "Cucciolo"‚ 1950 Meanwhile
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Executive Summary Ducati‚ founded on July 4‚ 1926‚ is an Italian company that produces and sells sport motorcycles. From the advent‚ Ducati has been a front runner on the motorcycle technology front. The hallmark of Ducati’s technical excellence has been its Desmodromic engine‚ famous for its remarkable power delivery. It is found on almost every motorcycle Ducati has produced till date. In 1996‚ Ducati was on the verge of bankruptcy due to lack of working capital. The company rebounded by 2000
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Patrick England Ducati individual write up #3 Management 495 2/7/2012 Can Ducati sustain its position in the sport segment? Can Honda and other Japanese manufactures stop its growth in this segment? The ability for Ducati to sustain its position in the sport segment of motorcycles is going to depend on management’s ability to stay focused on keeping their image and story alive and in the minds of the motorcycle community. If management continues its current trend I believe that
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Ducati Q) How did Ducati become a profitable motorcycle maker despite its small scale? Before its takeover by the American private equity firm Texas Pacific Group (TPG)‚ Ducati went from being one of the top manufacturers of the high performance sport motorcycle industry to being on the verge of bankruptcy. TPG identified Ducati as a high end product with enormous potential for growth but realized that serious change was required if Ducati was to ever fulfill this potential. TPG decided to
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Memorandum Subject: Ducati: In Pursuit of Magic (A) Date: Feb. 19th 2013 Ducati is one of the premium motorcycle producers specializing in sport segment superbike from Italy. The company experienced booming in sales and reputation in 1996-2001. This boost had attracted Texas Pacific Group to pursue controlling interest in the company for higher expected future return. The economic boom somehow masked the mistakes made by Ducati during the period. When sales started to decline during 2002-2005
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Ducati: Taking on the Challenge On the first business day of January 2006‚ Federico Minoli pulled up and parked his Ducati Multistrada motorcycle in front of the Ducati headquarters in Bologna‚ Italy. As he looked up at the complex‚ which housed offices‚ the assembly factory and the Ducati museum‚ he reflected back on the company’s history. 2006 would mark several anniversaries: 80 years since Ducati was established to produce electronic radio equipment; 60 years since Ducati had been producing
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Ducati Ducati is a professional motorcycle manufacturer‚ especially in producing sport motorcycles. Ducati had been transformed from a company on the verge of bankruptcy into one of the most profitable motorcycle manufacturer by Federico Minoli. At the end of April‚ 2001‚ Ducati had gained a market share of 7% in the sport bike segment while Industry analysts agreed the company had an excellent growth potential in the following years. However‚ by ensuring the company’s profitable double-digit growth
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