TY - JOUR AB - The case simulates the experience of a private equity investor evaluating a potential investment, requiring the student to: (1) determine the risks and merits of an investment in Toys “R” Us, (2) evaluate the spectrum of returns using multiple operating model scenarios, and (3) identify strategic actions that might be undertaken to improve the risk/return profile of the investment. The case also discusses trends and participants in the private equity industry.To understand how private equity firms analyze investment opportunities through application of an LBO model (provided in the case) that summarizes returns and risks. Also, to review private equity participation in club deals, large (and early) dividends, and IPOs. VL - IS - SN - 2474-6568 DO - 10.1108/case.kellogg.2016.000366 UR - https://doi.org/10.1108/case.kellogg.2016.000366 AU - Stowell David P. AU - Raino Matthew PY - 2017 Y1 - 2017/01/01 TI - The Toys “R” Us LBO T2 - Kellogg School of Management Cases PB - Kellogg School of Management SP - 1 EP - 23 Y2 - 2024/09/20 ER -