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Case
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Reference no. 9-899-076
Subject category: Entrepreneurship
Published by: Harvard Business Publishing
Originally published in: 1999
Version: 25 March 2004

Abstract

Sirona, the dental systems business of Siemans AG is being sold through an auction. In September 1997, buyout firm Schroder Ventures has to decide whether to make a binding offer for the business. Schroder has done extensive due diligence with support from a team of consultants. There seems to be some unrealized growth potential as well as room for cost reduction at Sirona. But there is also considerable uncertainty around cost reduction and growth scenarios. Furthermore, there seem to be problems at Sirona subsidiaries abroad. Finally, the financing will depend on the feasibility of a high-yield offering, a first of its kind in Germany.
Location:
Size:
2,000 employees, USD500 million revenues
Other setting(s):
1997

About

Abstract

Sirona, the dental systems business of Siemans AG is being sold through an auction. In September 1997, buyout firm Schroder Ventures has to decide whether to make a binding offer for the business. Schroder has done extensive due diligence with support from a team of consultants. There seems to be some unrealized growth potential as well as room for cost reduction at Sirona. But there is also considerable uncertainty around cost reduction and growth scenarios. Furthermore, there seem to be problems at Sirona subsidiaries abroad. Finally, the financing will depend on the feasibility of a high-yield offering, a first of its kind in Germany.

Settings

Location:
Size:
2,000 employees, USD500 million revenues
Other setting(s):
1997

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