Subject category:
Strategy and General Management
Published by:
International Institute for Management Development (IMD)
Version: 29.10.2024
Length: 17 pages
Data source: Field research
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Abstract
Geneva (Switzerland), August 2021. There was a lot at stake for Sébastien. This was the culmination of his 18-month NCA supported search journey to find a company to acquire. Instead of a single target, he was now faced with the prospect of acquiring 4 separate companies at once, consolidating them into a group. One, SAS, was bigger than the others but also faced significant financial issues. Hopefully he had identified three additional companies as acquisition targets, all profitable and with low levels of debt but individually a bit too small. Should he pursue all three as a single deal or add SAS for a four-company deal? In a last-ditch effort to figure out the best deal configuration, he ran some simulations about the potential returns of the group with and without the SAS turnaround. With those projections in hand, it was time to finalize the management buy-in proposal to present to the investment committee the following week.
Time period
The events covered by this case took place in 2020-2023.Geographical setting
Region:
World/global
Countries:
Switzerland; Germany; Portugal; United States
Featured company
IAR Group
Employees:
51-200
Industry:
Finance and Insurance:Private Equity
About
Abstract
Geneva (Switzerland), August 2021. There was a lot at stake for Sébastien. This was the culmination of his 18-month NCA supported search journey to find a company to acquire. Instead of a single target, he was now faced with the prospect of acquiring 4 separate companies at once, consolidating them into a group. One, SAS, was bigger than the others but also faced significant financial issues. Hopefully he had identified three additional companies as acquisition targets, all profitable and with low levels of debt but individually a bit too small. Should he pursue all three as a single deal or add SAS for a four-company deal? In a last-ditch effort to figure out the best deal configuration, he ran some simulations about the potential returns of the group with and without the SAS turnaround. With those projections in hand, it was time to finalize the management buy-in proposal to present to the investment committee the following week.
Settings
Time period
The events covered by this case took place in 2020-2023.Geographical setting
Region:
World/global
Countries:
Switzerland; Germany; Portugal; United States
Featured company
IAR Group
Employees:
51-200
Industry:
Finance and Insurance:Private Equity