Subject category:
Finance, Accounting and Control
Published by:
International Institute for Management Development (IMD)
Version: 22.01.2008
Length: 9 pages
Data source: Published sources
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Abstract
This is part of a case series. Hedge fund Cerberus Capital Management assembled a deal to buy a majority stake in GMAC - the financing business of auto maker GM. The sale of a majority stake in GMAC's financing arm was part of a strategy to return GMAC's credit rating to investment grade, which would lower its cost of borrowing - essential for a finance company to remain competitive. The sale would also provide a cash infusion to parent GM, which was struggling under the weight of a massive fixed cost structure and fierce competitive pressures.
Location:
Industry:
Size:
USD18 billion of assets under management
Other setting(s):
May 2005 to December 2006
Subject category:
Finance, Accounting and Control
Published by:
International Institute for Management Development (IMD)
Version: 22.01.2008
Length: 12 pages
Data source: Published sources
About
Abstract
This is part of a case series. Hedge fund Cerberus Capital Management assembled a deal to buy a majority stake in GMAC - the financing business of auto maker GM. The sale of a majority stake in GMAC's financing arm was part of a strategy to return GMAC's credit rating to investment grade, which would lower its cost of borrowing - essential for a finance company to remain competitive. The sale would also provide a cash infusion to parent GM, which was struggling under the weight of a massive fixed cost structure and fierce competitive pressures.
Settings
Location:
Industry:
Size:
USD18 billion of assets under management
Other setting(s):
May 2005 to December 2006
Related
Subject category:
Finance, Accounting and Control
Published by:
International Institute for Management Development (IMD)
Version: 22.01.2008
Length: 12 pages
Data source: Published sources