Leveraged buyouts (LBOs) involve using borrowed funds to acquire a company. In an LBO, a group of investors including private equity firms and company managers use a large amount of debt relative to equity to purchase an underperforming company. The strategy is to restructure the company to improve performance and cash flows to repay the initial debt over time. Tata Steel's acquisition of Corus for $12.9 billion in 2007 was one such LBO, funded through equity capital, long-term bank debt, and quasi-equity financing.
It is comprehensive Presentation covering all the aspects of Takeover defenses like
Active Takeover Defense and Preventive Take over Defense
Hope you enjoy reading it as much as i enjoyed working it
- Understand the motives for corporate restructuring, different types of restructuring including: mergers & acquisitions, leveraged buyouts, and divestitures.
- Valuing the corporate restructuring process.
- Case Study: Exxon-Mobil merger
It is comprehensive Presentation covering all the aspects of Takeover defenses like
Active Takeover Defense and Preventive Take over Defense
Hope you enjoy reading it as much as i enjoyed working it
- Understand the motives for corporate restructuring, different types of restructuring including: mergers & acquisitions, leveraged buyouts, and divestitures.
- Valuing the corporate restructuring process.
- Case Study: Exxon-Mobil merger
Portfolio Management, Active, Passive, Discretionary Portfolio management services and Non-Discretionary Portfolio management services
OBJECTIVES OF PORTFOLIO MANAGEMENT:
Stable Current Return
Marketability
Tax Planning
Appreciation in the value of capital
Liquidity
Safety of the investment
Portfolio Management, Active, Passive, Discretionary Portfolio management services and Non-Discretionary Portfolio management services
OBJECTIVES OF PORTFOLIO MANAGEMENT:
Stable Current Return
Marketability
Tax Planning
Appreciation in the value of capital
Liquidity
Safety of the investment
MBO Guide - Turning Executives into Ownersmdelcarlo
This guide is designed for managers who are considering a management buy-out (MBO). It provides background on management buy-outs, how to spot an MBO opportunity, outlines the typical buy-out process, funding and legal structures, highlights many of the key issues that management will face and explains how DVR Capital can assist in negotiating value for the management team.
Meaning of corporate finance, meaning of fixed and working capital, factors affecting requirement of fixed capital, factors affecting requirement of working capital, what is capital structure, and componenets of capital structure.
Growth without equity – why entrepreneurs choose debt - Workshop by Olya Klueppel, Partner of ESO Capital, and Natalia Nowak, Managing Director of ESO Capital at the NOAH 2015 Conference in Berlin, Tempodrom on the 9th of June 2015.
Sources of Finance Functions and Investment Policies of NBFIs in India RBI Gu...Mohammed Jasir PV
Sources of Finance
Functions and Investment Policies of NBFIs in India
RBI Guidelines on NBFCs
Products offered by different NBFCs in India
Features of these Financial Products
how to sell pi coins effectively (from 50 - 100k pi)DOT TECH
Anywhere in the world, including Africa, America, and Europe, you can sell Pi Network Coins online and receive cash through online payment options.
Pi has not yet been launched on any exchange because we are currently using the confined Mainnet. The planned launch date for Pi is June 28, 2026.
Reselling to investors who want to hold until the mainnet launch in 2026 is currently the sole way to sell.
Consequently, right now. All you need to do is select the right pi network provider.
Who is a pi merchant?
An individual who buys coins from miners on the pi network and resells them to investors hoping to hang onto them until the mainnet is launched is known as a pi merchant.
debuts.
I'll provide you the Telegram username
@Pi_vendor_247
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
Seminar: Gender Board Diversity through Ownership NetworksGRAPE
Seminar on gender diversity spillovers through ownership networks at FAME|GRAPE. Presenting novel research. Studies in economics and management using econometrics methods.
how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
how to swap pi coins to foreign currency withdrawable.DOT TECH
As of my last update, Pi is still in the testing phase and is not tradable on any exchanges.
However, Pi Network has announced plans to launch its Testnet and Mainnet in the future, which may include listing Pi on exchanges.
The current method for selling pi coins involves exchanging them with a pi vendor who purchases pi coins for investment reasons.
If you want to sell your pi coins, reach out to a pi vendor and sell them to anyone looking to sell pi coins from any country around the globe.
Below is the contact information for my personal pi vendor.
Telegram: @Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
1. LBO – Leveraged Buy out
• Borrowed funds used to pay for all or most of the purchase
price of the acquisition of the company
• In a typical LBO, a group of investors purchase an
underperforming firm by raising an unusually large amount of
debt relative to the equity
• Investors could be firm’s managers with P.E. players and a
Venture Capital firm
• The strategy is to restructure the firm, improve its
performance and increase the cash flows in order to repay a
large part of the initial debt within a certain amount of time
• It is also a kind of a Arbitrage operation since one buys an
undervalued company improves its short term performance
and then selling it at a higher price
2. • Investors in LBOs are Financial investors
• LBO firms are generally taken to the public or
divested to corporate buyer
Typical Capital structure – a) Senior Bank debt
(secured by target’s assets )
b) Subordinated (Unsecured debt )
c) Preference stock
Common stock / equity
3. • In recent times a few common strategies have
evolved :
High technology buyouts
Joint venture LBOs in which the buyout specialist
shares equity ownership with a strategic buyer
Consortium buyouts where several PE firms buy
out target
PIPE – Private equity firms take minority stake in
Public Listed companies
4. • LBOs are either asset based or cash flow based
• Asset based ones – sale of assets by the target to the
acquiring company or merger of the target into the
acquiring company or into a W.O.S. of the acquiring
company
• Starts with a LOI between buyer and seller
• Acquirer is asked for a Commitment letter from a
recognized lender for loans required to fund the acquisition
• This letter allows the lender to have access to the target
company’s records for credit evaluation
• Closing is conditioned upon the acquirer’s ability to obtain
financing
5. • A properly structured LBO should have a Balance Sheet
that indicates solvency at the time of the closing
• Cash flows should be enough and Off-balance sheet
items cash impact needs to be quantified and included
in the projections
• Important feature in a LBO is the SPV
• Here the acquiring company could float a SPV which is
a 100 % subsidiary with a minimum equity capital
• This SPV leverages this equity to gear up significantly
higher debt to buyout the target company
• This debt is paid off by the SPV thru the target
company’s own cash flows
6. • MBOs – Special type of LBO which occurs
when the management of a company decides
to take over its publicly held company or a
division of the company and consequently
make it private
• To convince stockholders to sell managers
must be able to offer them a premium above
the current market price
7. • Reasons for an MBO – a) Opportunity to
control own business
B) Long term faith in the company
C) Better financial rewards
D) Opportunity to develop own talent
E) Absence of HO constraints
F) Fear of redundancy
8. • Process of a LBO – a) Decision to divest
b) Decision to purchase – managers of the division attempt to buyout
c) Financial analysis of division – book value, liquidation value,
replacement value of assets
d) Determination of purchase price
e) Investment by the division management
f) Group of investors – lenders put together for providing finance for
the LBO
g) External equity investment – done in conjunction with the division
management , investors, cash flow analysis
h) Cash flow analysis
i) Financing is committed
9. • Features of a LBO candidate –
Stable cash flows
Stable management
Scope for cost reduction
Equity interest of owners – act as a cushion to protect the lenders
Debt capacity – lower the debt on the Balance sheet of the firm,
greater may be the borrowing capacity of the firm
Non core business – if this can be sold to pay off a large part of the
firm’s post LBO debt, it is easier to finance such a deal
Intangible factors – Dynamic, innovative and growing co. is
preferable
10. • Major sources of target companies –
Family run (sale) of private companies
Divestiture of SBUs by large companies
Conversion of public company to private
company
Bankruptcy
11. • Financial and Risk evaluation – An LBO
transaction makes sense when the Present
value (PV) of the FCF (Future Cash flows) to
the firm – (PV fcff) discounted at the WACC
equals to exceeds the total of the investment
comprising Id (Debt), Ie (Common equity), Ip
(Preference stock) i.e.
• ((PV fcff – (Id+Ie+Ip)) >= 0
12. LIST OF BUYOUTS BY INDIAN COMPANIES
Acquirer
Company
Target
Company Country of Target
Deal Size
Dr. Reddy's Lab. Betapharm Arzneimittel Germany USD 570 mn
Suzlon Energy EVE Holding Belgium USD 565 mn
Tata Coffee Eight o'clock coffee USA USD 220 mn
Tata Steel Corus Anglo-Dutch USD 12.9 billion
UB Group Whyte & Mackay Glasgow 270 mn Sterling
13. • In an LBO it is possible to do justice to the common equity investors but
not to other investors like debt, preference
• An LBO deal makes sense to common equity investors if the PV of the
FCFE exceeds the value of the equity investment in the deal and the PV of
FCFF exceeds the total cost of the deal, equity plus debt and preferred
stock
• These conditions suggest that the firm has achieved returns which exceed
the minimum returns required by equity investors as well as debt and
preferred stock holders
• Hierarchy of funding / financing alternatives –
1. Senior Debt (Secured by firm’s assets – Accounts receivable, fixed assets)
2. Mezzanine financing – unsecured
3. Junior debt / subordinated debt
4. Equity
14. Case Study – Tata Corus
• On Jan 30 2007 Tata Steel acquired 100 % stake in Anglo-
Dutch steelmaker at 608 pence per share (cumulatively
valued @ US $ 12.9 billion)
• It was a all-cash deal
• Motivation – Tata steel may become the world’s 5 th largest
steel manufacturer from 56 th.
• Some of the synergies which were present between Tatas and
Corus were : - i) Corus was facing a situation of high costs due
to inc. raw material prices and Tata was one of the lowest
cost steel producers of the world
ii) Expectation of technology transfer and R & D capabilities
iii)Strong cultural fit between two organizations
15. • For acquisition purposes a SPV, a wholly owned subsidiary
called Tata Steel UK was set up by Tata Steel.
• Tata Steel appointed Credit Suisse, ABN Amro and Deutsche
Bank to arrange bridge financing
• Sources of finance for the acquisition – a) Equity capital (Tata
Steel) – USD 4.10 billion
B) Long term debt from a Consortium of banks – USD 6.14 billion
C) Quasi-Equity funding at Tata Steel Asia Singapore – USD 1.25
billion
D) Long term capital funding at Tata Steel Asia Singapore – USD
1.41 billion
16. • Post acquisition in 2011 the company started deleveraging. It repaid Rs.
4200 crores of borrowings
• In the same year there was reduction in interest on term loans arising out
of repayments
• Also the D/E went up from 0.84 in 2006-07 to 1.55 in 2010-11
• Int. coverage ratio went down from 16.38 in 2006-07 to 4.58 in 2010-11
• Corus (Europe) continued to do well in 2011 despite a domestic slowdown
in India
• Conclusion – i)LBOs essentially magnifies returns to shareholders and
reduces WACC as interest is tax deductible
ii) It could also add to the risk if in case the company is not able to pay
interest & principal, in such cases the LBO may fail and the company may
go bankrupt if the cash flows are insufficient to meet the interest
payments