Ducati and Texas Pacific Group - A 'Wild Ride' Leverage Buyout.
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Ducati and Texas Pacific Group - A 'Wild Ride' Leverage Buyout Introduction and Recommendation Due to Ducati's strong turnaround potential and other revenue opportunities under new management, proposed deal structure, and Italy's developing public equity market, we recommend that the Texas Pacific Group go through with the purchase of Ducati, at a price between 400 - 500 billion Lira. Strong Turnaround Potential and Other Revenue Opportunities The name Ducati has long been associated with the street bike market segment. Like Harley Davidson with cruisers, Ducati's domination of street bike racing has elevated its name to the very top of the>500cc market. Despite the great name, Ducati has lousy management. Ducati's parent company, Cagiva, had diversified into too many areas, decreasing value by intertwining businesses' financial statements and presenting a lack of visibility into divisional profits. As a result, Ducati had 180 billion in debt by 1995 and negative retained earnings. In 1996...


