MediMedia International, Ltd.

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

In February 1991, the managers of this multinational specialty publishing company proposed to take the company private in a leveraged buyout (LBO). In addition to the ordinarily interesting features of the typical LBO, this transaction was the first to be denominated in ECUs and one of the few in which the managers provided all the equity financing. The tasks for the student are to value the company and evaluate the attractiveness of the transaction from the standpoints of seller, senior lender, mezzanine lender, and equity investor/manager. The case can be used to (1) exercise students' skills in valuing a highly leveraged company, (2) illustrate how deal structuring can mitigate potential agency problems, and (3) explore the problems and possible solutions associated with financing a global firm.

Keywords

Citation

Bruner, R. (2017), "MediMedia International, Ltd.", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000194

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Publisher

:

University of Virginia Darden School Foundation

Copyright © 1992 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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