Entrepreneurial Finance and Private Equity

Class #14 – Monday, December 2, 2002

Transfer of Family Ownership

 

Case:     Fojtasek Co. and Heritage Partners – March 1995 (9-297-046)

 

Network File:  Fojtasek.xls

 

  1. What is the Fojtasek family’s problem?

 

  1. How do each of the three possibilities that the family is considering—a buyout, a leveraged re-capitalization, and a “Private IPO—address its needs?  What are the key concerns about each transaction?

 

  1. How reasonable is the payment for Fojtasek being offered by Heritage?  How onerous are the control rights that it is demanding?  What would you recommend the Fojtasek family do?

 

  1. How common a problem is the Fojtasek family’s dilemma?  Does Heritage’s “Private IPO” represent a more general solution to such problems?