Entrepreneurial
Finance and Private Equity
Late Stage and Buyouts
Class #12 – Monday,
November 25, 2002
LBO
Case: The Exxel Group: September 1995 (9-297-068)
Optional Reading: “Practices of Active Private Equity Firms in Latin America.” (UVA-F-1336)
Network File: EXXEL.xls
- How
is investing in emerging market countries similar to or different from
investing in the United States? In Europe?
- How
has Navarro gone about developing a “franchise” for Exxel in Argentina? How has his relationship with
Oppenheimer evolved? What are the
strengths or weaknesses of this form of international private equity
organization?
- Is
Argencard an attractive investment?
Why or why not? How
reasonable is the valuation that Exxel proposes to pay?
- Why
has Exxel chosen the particular structure that it has for the proposed
transaction? What are likely to be
the objections that U.S. private equity
organizations that are considering investing in the deal will raise about
the proposed term sheet (reproduced in Exhibit 10)?
- What
opportunities and challenges will Exxel face as the Argentine private
equity market evolves? As the U.S. private equity
evolves?