Loading library
Large Private Equity Fund
An independent practice case, not supplied or endorsed by the named firm.
Build a take-private LBO from historical accounts and write a two-page investment recommendation for a metering-equipment business.
Build a take-private LBO from historical accounts and write a two-page investment recommendation for a metering-equipment business. You have three hours. Set and justify your own operating forecast, then assess the proposed offer and financing.
Coverack's shares trade at £25.40. The partner hands you the company's recent annual reports and the unaudited first-quarter management accounts that the board has shared under a non-disclosure agreement, condensed into the data pack, and asks: "Would this be a good investment? Build me a model and write a memo I could take to the investment committee."
The deal team has pencilled in the offer price and the capital structure (see Transaction assumptions) so that everyone starts from the same entry price and financing. The operating forecast is yours: decide what the historical record says about growth, margins, capex and working capital, and defend those choices in the memo.
This case requires paid access.
Starting files
Solution files
This case costs £19 and is available to customers with an active £499 membership.
Get Alpha