The Southland Corporation (A)

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.

Case

Reference no. 9-291-038

Subject category: Finance, Accounting and Control

Authors: Elizabeth H McNair (Harvard Business School); Richard S Ruback (Harvard Business School)

Published by: Harvard Business Publishing

Originally published in: 1991

Version: 9 December 1997

Length: 20 pages

Data source: Published sources

Topics: Forecasting; Reorganization; Recapitalization; Leveraged buyouts; Valuation; Corporate governance; Bids; Strategy; Cash flow

Share a link: https://casecent.re/p/46527

| No reviews for this item

This product has not been used yet

View our pricing guide or login to see prices.

Abstract

Examines the Thompson's USD4.9 billion leveraged buyout of the Southland Corp in 1987. As the original founders of Southland, the Thompsons were concerned about losing control over the company upon learning of the Belzberg family's acquiring interest. The teaching objectives are: to explore the characteristics of an LBO candidate, to examine the dynamics of the corporate control process when insiders are substantial stockholders, and therefore serve as both buyer and seller, and to evaluate the cash flow forecasts in an LBO and use them to analyze bidding behavior.

Location:

Texas

Industry:

Retail trade

Size:

67,200 employees

Other setting(s):

1987