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