LBO of Electronic Components Manufacturer




Investment Banking Challenge

  • Successfully complete a leveraged buyout of a large NYSE listed electronic components manufacturer

  • Help buyer overcome competitive bidders and complete a transaction that had been stalled by other buyers willingness to meet board’s requirements


  • Introduced deal to leading LBO fund and interested them in making a proposal within a week

  • Developed valuation rationale to win over competing bidders and achieve board acceptance

  • Structured transaction as a recapitalization in order to achieve accounting benefits and provide additional shareholder upside


  • Transaction completed at 35% premium to pre-deal market level

  • LBO fund re-IPOed the company and ultimately returned more than 5 times its investment to its limited partners through a series of dividends and share sales over a seven-year period

                                                                     Copyright © 2006 Palladian Capital Partners LLC   Last modified: 10/27/07