La batalla por Cortefiel

IE code:
DF1-107-M
Language:   Spanish
also available in English
Format:  
Multimedia
Est. dedication time:
90 minutes
Academic Area:
Type of publication:
Case Study
La batalla por Cortefiel

Description

This multimedia case presents the leveraged acquisition of the Spanish textile group Cortefiel. This acquisition is made by a capital risk fund that has developed a business plan that will attempt to create value through Cortefiel’s operations and this fund. At one point the operation is blocked due to other capital risk funds which are also interested in the group. Students have to analyze the business plan and decide whether or not to increase the price offered.

The case presents information about the Group and includes interviews with sector experts that participated in the operation. The last part lets students numerically solve the case carrying out all the sections of the business plan and analyzing if the price that they are paying for the stock should be increased or not.

Author's comments

The Battle for Cortefiel shows a large scale operation based completely on real facts and analyzed from the buyer perspective (capital risk fund).

All the elements of a LBO operation are described in the case. Students solve the case step by step before finally calculating the estimated profitability expected from the operation with the objective of deciding the price. All this is set in a competitive environment with other capital risk funds.