Lenders vs GPs

Abstract

This case presents the financial and operational situation of a company subject to a Management Buy-In. Students can be divided between lenders (Banks, or Private Debt firms) and borrowers (Private Equity firms). They debate the appropriate capital structure for the target company. In doing so, students are expected to become fluent in the language of leveraged finance, and to learn by doing the logic behind the choice of debt quantum, structure, price (yield) and covenants.

Authors

 Ludovic Phalippou

James Ranger