Entrepreneurial Finance and Private Equity
Class #13 – Tuesday,
November 26, 2002
Mezzanine Financing
Case: BCI GROWTH III – May 1993 (9-298-093)
Network File: BCI.xls
- How
do the Casella brothers propose to create value in a mature industry such
as waste haulage and disposal? What
are the key risks associated with their roll-up strategy?
- To
what extent to the financial projections provided by Casella and Bohlig
help Remey assess the risks and rewards of the transaction: What are their key limitations?
- Remey
worries that this transaction will offer mezzanine returns for venture
capital-type risks. Are these
concerns reasonable? Should BCI
undertake the Casella investment?
- BCI
Advisors has sought to differentiate itself by specializing in “mezzanine”
private equity investments. What
are the key strengths and weaknesses of their strategy? Is their strategy likely to be
sustainable in view of the growth of the private equity industry?