‚ will pay $69.25 for each TXU share‚ 15 percent more than the closing stock price on Feb. 23. TXU has only $11 billion of debt with the new $36 Billion debt‚ $22.5 billion of which matures by 2014 the rest $13.5 to mature in 2034. TXU energy post LBO has been renamed as Energy Future Holdings Inc.‚ with the acquisition using a combination of high-yield‚ high-risk loans and bonds. As part of the buyout‚ the electric distribution part of the company will be called Oncor Electric Delivery‚ the electric
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Memo for Valuing Cross-Border LBO of Yell Group Group 5: Li Xiao‚ Xia Liu‚ Minghao Gu‚ Shine Li Table of Contents 1. Purpose and Overview 2. Acquiring Yell Group Is a Good Choice for Apax and Hicks Muse 2.1 Directory Industry has enjoyed fast growth both in U.K. and U.S. 2.2 Yell Group is a good LBO candidate 2.3 Apax and Hicks Muse are experienced media investors 3. Valuation 3.1 Valuation Method 3.2 FCF of BT Yellow Pages 3.3 FCF of Yellow Book USA 3.4 Interest Tax Shield 3
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The Toys “R” Us LBO Background Toys "R" Us‚ Inc. is the world’s leading dedicated toy and juvenile products retailer. As of January 29‚ 2005‚ it operated 1‚499 retail stores worldwide and generated 11.1 billion in revenue. However‚ that’s a decrease of 1.9 percent from a year ago. Toys "R" Us has suffered from both downstream demand and increased competition from mass/discount channel such as Wal-Mart and Target. A group of private equity investors intends to do a leverage buyout of Toys "R"
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A higher offer price is recommended due to the competitive nature of the dual-track process. The dual-track process has created a rather interesting environment for potential investors. Not only are investors competing with each other‚ but if the case that a deal is not worked out then Ford has made provisions for the company to be made public through an initial public offering (IPO). Hertz is a well established company with global operations. Furthermore‚ it has a stable revenue history that has
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Viet Duong Sybil Cheng 11/17/2011 Holmes Corp: LBO Valuation 1. Sustainability – One of Holmes Corp. major strengths is its long history of steady and predictable cash flow. Over the last five years‚ Holmes’ Net sales have grown from $41MM to $103MM which is approximately a growth rate of 151%. Over the same time frame Holmes’ net earnings have grown from $1M to $6.6M which is approximately a growth rate of 560%. This history of strong earnings means we can realistically expect stable
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Hertz A: 1. CD&R pursued Hertz for three years only to find itself facing an auction and a complicated deal. Is it worth it? • It is worth it. Because hertz is a mature company with predictable cash flows. Such acquisition provides a great opportunity to generate decent return on equity to sponsors • CD&R had access to available debt avenues to make the company grow • CD&R was able to make operating changes and improve the companies efficiency 2. What are the
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Appendix VI: Hertz Corp. Case Study Overview: The Hertz buyout is one of the largest private equity deals. It drew criticism in the media and from union members‚ after the company’s new owners paid themselves $1.3 billion in dividends not long after the transaction closed and ultimately financed the payments by selling stock to the public. The company has realized hundreds of millions of dollars in improved financial results annually‚ but also has cut thousands of jobs as it has sought to make
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DOLLARAMA LBO TO: BAIN CAPITAL FROM: ANALYST GROUP MICHAEL MALO SEBASTIEN HUBERT IVANINA MINCHEVA SUBJECT: INVESTOR RETURNS DATE: NOVEMBER 20th‚ 2004 DOLLARAMA LBO TO: BAIN CAPITAL FROM: ANALYST GROUP MICHAEL MALO SEBASTIEN HUBERT IVANINA MINCHEVA SUBJECT: INVESTOR RETURNS DATE: NOVEMBER 20th‚ 2004 TABLE OF CONTENTS INTRODUCTION 4 INDEPENDENT VALUATION OF DOLLARAMA 5 POTENTIAL IMPROVEMENTS TO DOLLARAMA OPERATIONS 11 RECOMMENDATION 17 APPENDIX 19 INTRODUCTION
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Del Monte Foods Company LBO Deal Report 1. Del Monte Foods Company (DLM or ‘the company’) is one of US ’s largest producers‚ distributors and marketers of premium quality‚ branded pet products and food products for the retail market. It is the world’s sixth largest manufacturer of preserved food‚ and the leading producer of both preserved fruit and preserved tomatoes . Its pet products segment includes brands like Meow Mix‚ Kibbles n Bits‚ Milk-Bone‚ 9Lives‚ Pup-Peroni‚ Gravy Train‚ Nature
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1. How much value do you expect to be created by operating improvements and capital structure changes envisioned by CD&R? CD&R proposed changes to the following areas. a. US RAC on-airport operating expenses: Labor per transaction‚ administrative and other costs had increased 41%‚ 65% and 30% respectively between 2000 and 2005. In addition‚ margins were not constant across locations and varied from 32% to -7%. CD&R proposed that the operating expenses could be reduced resulting in cost savings
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