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    Case Study

    Argos Soditic - The Kermel proposal

    By Benoit F. Leleux and Henri Bourgeois
    17 pages
    December 2003
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    Reference: IMD-1-0203

    In April 2002 Guy Semmens, a partner in Argos Soditic, has to decide whether to take the lead in the MBO of Kermel, a niche player in the specialty fiber market. This case invites participants to consider an MBO from the perspective of the private equity investor and answer the following questions: what is the fair value of Kermel, how to structure the deal to incentivize management while generating adequate returns, what would be the exit strategy…? This case is interrelated with two other cases that focus on the other actors of the deal: Venkatesh Tulluri, who took the decision to engineer the MBO and would become Kermel’s CEO, and TCFG, the M&A advisor of Tulluri and Kermel’s management team.

    Keywords
    Management by Objectives, Buy-out, Private Equity, Spin-off, Valuation
    Settings
    April 2002
    Type
    Field Research
    Copyright
    © 2003
    Available Languages
    English
    Related material
    Teaching note, Video
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    This case study is part of a series
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