Corporate Finance Case Study

3476 words 14 pages
ROBERTO Ristorante

1- In a few phrases, describe the situation of the Roberto and Chez Léon chain.

2- Without the Chez Léon chain, would you think that the Roberto chain has a positive, nil or negative value?

3- What are the foundations of value for Chez Léon?

4- Given the objectives of the Italian State, would you recommend that the sale be completed: a. On an open bid basis? b. Via a private negotiation, selecting the most obvious candidates? Why?

5- Once you have selected the procedure, is it necessary to set a minimum price for the Roberto group below which, to safeguard the interests of the Italian State, it will not sell its stake in the group? Why?

6- Would you
…show more content…

Roberto Group

Olivetti

5.
Given the objectives of the Italian State, would you recommend that the sale be completed: * On an open bid bases? * Via a private negotiation, selecting the most obvious candidate?Why? An interesting result of a first price auction model with incomplete information is obtained. Under a specific condition, an increase in the number of bidders increases the equilibrium expected information, acquisition, expenditures of all bidders and decreases the expected bid revenue to a seller. Competition among bidders in the form of entry and private information acquisition is not profitable to a seller.
At some point during this phase, senior managers of both parties will need to meet and develop the basis for a working relationship. This will include:

* Confidentiality agreements * Preliminary disclosure information (help to ascertain strategic fit, business performance and potential synergies) * Memorandum (timetable, rules of engagement, bid procedure) * Financial results and projections * Initial indication of interest (non-binding bid, initial due diligence,availability of funds, conditions to closing).

Deal Execution - The next stage is the negotiation of the deal. Negotiation of a definitive agreement can be time consuming. The acquiring business will need to bring together a mix of experiences and backgrounds into the deal team, including: *

Related

  • F.C Case Study Harvard Business School
    14024 words | 57 pages
  • Crowdfunding of Small Entrepreneurial Ventures
    10441 words | 42 pages
  • ATHE Level 6 Management Specification2
    12412 words | 50 pages
  • Career Preparation
    3588 words | 15 pages
  • Economic 2302 Paper
    2039 words | 9 pages
  • Wrigley Case Study
    2269 words | 10 pages
  • Earnings Management and Corporate Governance in Bangladesh (the Role of the Board and the Audit Committee)
    9335 words | 38 pages
  • Toshiba Accounting Scandal
    3595 words | 15 pages
  • Southern Homecare Cost of Capital Case 16
    5570 words | 23 pages
  • Diamond Chemical
    1769 words | 8 pages