Bulter Case Essay

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Butler Capital Partners and Autodistribution The deal became feasible because of a failed takeover battle for Autodistribution parent company. Private equity investor Butler Capital Partners must make an investment decision within three weeks. Other private equity firms compete with Butler for the deal. Butler must assess the potential for margin improvement and expansion within France and to other European countries. Furthermore, since the price for the deal is set, Butler must focus on finding an advantageous structure for all parties to secure the deal. Teaching Purpose: assessing the feasibility of a private equity transaction in France, valuation of a car parts distributor, structuring executive compensation. Questions: What industry and strategic factors must be considered in the decision to invest in a components supplier?What local investment factors should be of concern in the decision to invest in Autodistribution? Should Walter Butler submit a proposal for Autodistribution? What rate of return do you expect for this investment? Please consider the assumptions for margin improvements and growth in Exhibit 18 of the case. What is your assessment of Autodistribution�s chances for pan-European expansion? In your opinion, what are the major risks associated with this investment? What can Walter Butler and his team do to mitigate these risks? Paul-Marie Chavanne is interested in joining Autodistribution as CEO, but he has not signed on yet. What kind of incentives should Walter Butler offer to Chavanne? How should these incentives be structured? What should Walter Butler's strategy be in negotiating the

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