Product details

This is the first of a two-case series (110-062-1 and 110-063-1). In the summer of 2006, Bob Fisher, managing partner of Tango, a pan-European private equity fund, was about to make a decision concerning the acquisition of Victor, a quoted French soft drinks company. The proposed bid price factored in a premium for the selling shareholders and the acquisition would be financed through substantial financial leverage. The level of debt was considered reasonable by market standards, at that time. The structure comprised both senior and mezzanine loans and the lenders' group included commercial banks and financial institutions. Bob and his team had already identified a number of stand-alone improvements that would increase the value of Victor and allow Tango to exit the deal, at a profit, in five years time. The management team of the target would also co-invest in the leveraged buyout. The case provides all the financial information, which is needed in order to prepare a set of financial projections and calculate the expected return for the investors.