Brazos Partners: The Comark Lbo
Posted: 30 Dec 2006
Date Written: February 19, 2004
Abstract
SUBJECT AREAS: Due diligence, Leveraged buyouts, Negotiations, Recapitalization, Valuation
CASE SETTINGS: Texas; 6 employees; 2001
The partners of a new midmarket buyout fund are working on a buyout of a closely held modular building company. Although originally structured as a stock deal, they have realized that an asset deal would be preferable from their point of view and are trying to determine what benefits it might hold for the sellers, whose continuing involvement in the company is essential for success. This case describes the process of the deal's due diligence and the state of the LBO industry in the early 21st century.
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