PRIVATE EQUITY : a casebook

Private Equity' explores the deal making and investment strategies of private equity investors with an analytical framework that focuses on value-add. Cover Front Matter Half-title Title page Copyright information Table of contents Preface Sections 1-5 Introduction to Private Equity Finance Structure of Private Equity Finance Introduction to Private Equity Leveraged Buyouts Competition for LBOs and Corporate Control Private Equity Investors Life Cycle of Investment Valuation Debt Financing A Brief History of the Private Equity Industry Notes Private Equity Finance Vignettes: 2016 Founder's Battle The New Opportunities for Limited Partners Have It Your Way Safeway Notes Section 1 Deal Sourcing and Evaluation Chapter 1.1 A Note on Valuation in Private EquityIntroduction Discounted Cash Flow Valuation: Cash Flows Valuing Cash Flows with the CCF Method Discount Rates Some Thoughts about Discount Rates Weighted Average Cost of Capital (WACC) LBO Valuation Models Multiples Valuation Methodology Recommendation Appendix A: Valuation Example Using CCF and WACC Pro Formas Calculating Free Cash Flows Discount Rate Terminal Value Present Value Notes References Chapter 1.2 A Note on Capital Cash Flow Valuation Introduction Mechanics of Capital Cash Flow Valuation Calculating Capital Cash FlowsCalculating the Expected Asset Return Capital Cash Flow Valuation The Relation Between Capital Cash Flow and Free Cash Flow Valuation Applications Note Chapter 1.3 RJR Nabisco Company Background The Management Group Bid The KKR Bid The Auction The Bids Notes Chapter 1.4 HCA, Inc. (A) Background on HCA The Proposed Buyout Recent Performance Management Projections Premium Valuation Analysis Notes Chapter 1.5 HCA, Inc. (B) Overview Benefits to HCA Shareholders Bondholders Hospitals, Hospital Players & Communities We Serve Operating ImplicationsGovernance Notes Chapter 1.6 Summit Partners-The FleetCor Investment (A) Background: Summit Partners FleetCor The Proposed Transaction The Partners Meeting Notes Chapter 1.7 Summit Partners-The FleetCor Investment (C) Note Chapter 1.8 Private Equity Valuation in Emerging Markets The Additional Complexities of Investing in Emerging Markets Accounting for Diversifiable Firm- and Country-Specific Risks in Valuations Calculating the Appropriate Discount Rate when Systematic Risk Differs Choosing the Risk Free Rate Choosing the Beta Choosing the Equity Risk PremiumCalculating a Domestic Currency Valuation from Foreign Currency Cash Flows Approach 1: Calculate foreign currency valuation and then convert into domestic currency Approach 2: Convert cash flows into domestic currency and then calculate valuation Notes Chapter 1.9 The Abraaj Group and the Acibadem Healthcare Investment (A) Background: Turkey Foundation of the Republic Opening up of the Economy Coalition Governments and Crises Turkey Is on the Rise Again with a Stable Government Private Equity in Turkey Initial Attempts The Crisis Period Market Boom "Private Equity" is an advanced corporate finance book that integrates a range of topics from a private equity investor's perspective. The book presents a set of cases used in the Private Equity Finance class, an advanced elective course offered in the Harvard Business School MBA elective curriculum. The structure of the book follows the timeline of a typical investment. Starting with deal sourcing, due diligence and valuation, followed by execution of the transaction, including issues related to capital structure and governance, the book transitions to examining operational changes and management of the capital structure, closing with a set of cases related to exit. Intended for readers interested in working for private equity firms, investing in private equity as limited partners or providing investment banking or consulting services to private equity firms, "Private Equity" is also appropriate for readers who are interested in a more detailed exploration of corporate finance. | 'Private Equity' is an advanced applied corporate finance book with a mixture of chapters devoted to exploring a range of topics from a private equity investor's perspective. The goal is to understand why and which practices are likely to deliver sustained profitability in the future. The book is a collection of cases based on actual investment decisions at different stages for process tackled by experienced industry professionals. The majority of the chapters deal with growth equity and buyout investments. However, a range of size targets and investments in different geographical markets are covered as well. These markets include several developed economies and emerging markets like China, Russia, Turkey, Egypt and Argentina. This compilation of cases is rich in institutional details, information about different markets, and segments of the industry as well as different players and their investment practices – it is a unique insight into the key alternative asset class. Private Equity is an advanced applied corporate finance book with a mixture of chapters devoted to exploring a range of topics from a private equity investor's perspective. The goal is to understand why and which practices are likely to deliver sustained profitability in the future. The book is a collection of cases based on actual investment decisions at different stages for process tackled by experienced industry professionals. The majority of the chapters deal with growth equity and buyout investments. However, a range of size targets and investments in different geographical markets are covered as well. These markets include several developed economies and emerging markets like China, Russia, Turkey, Egypt and Argentina. This compilation of cases is rich in institutional details, information about different markets, and segments of the industry as well as different players and their investment practices -- it is a unique insight into the key alternative asset class. -- Provided by publisher