Leveraged Buyout

This case will introduce the class more specifically to the Leveraged Buyout (LBO) transaction structure used commonly in Private Equity - and discuss the use of leverage and debt financing in generating returns for the investor. Please consult the other readings recommended in the syllabus for additional discussion on the LBO. We will be discussing this in detail over the coming weeks.

For the CoMark Case - consider the following questions in your short and long-form write-ups:

1 - What is Brazos' (the Fund) investment strategy? Does it seem well-suited for its position as a first-time fund ?

2 - How has the current recessionary climate affected Brazos' investment strategy, in both favorable and unfavorable ways ?

3 - Is Co-Mark an attractive investment? What are your major concerns with the proposed deal ? how attractive is the purchase price?

4 - The Brazos' parners claim that structuring the transaction as an asset purchase (rather than as a stock purchase) is beneficial not just to Brazos, but also to the management team. Assess this claim.

If you are turning in this case for Short-Form write-up credit, please pick two (2) of the above questions to answer.

If you are turning in this case for Long-Form write-up credit, please pick three (3) of the above questions to answer.

Last - If you need to find a group to do group / long-form write-ups, contact me immediately, so we can set you up and get you into a group - to include evaluations of this case!