HomeResearch & Knowledgeback to HomeFinanceback to Research & KnowledgeAlex de Werra at TCFG – The kermel mandateback to Finance

Case Study

Alex de Werra at TCFG - The kermel mandate

By Benoit F. Leleux and Henri Bourgeois

6 pages

December 2003

Order this case study

Reference: IMD-1-0204

In April 2002 Alex de Werra, director at TCFG, was contacted by a fellow alumnus of IMD for advice on a possible management buyout of Kermel, a French textile company. Although De Werra handled this kind of transaction routinely, this mandate was very challenging. The vendor was in a rush to sell and De Werra had less than two weeks to convince a private equity (P/E) investor to submit a competitive bid. This case illustrates the key role played by M&A advisory firms in engineering P/E transactions. It also addresses the major dilemma they face in purchase mandates wherein they have to protect the interests of the management team but are often compensated by the P/E firm. 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 Argos Soditic, the PE investor.

Keywords

Management by Objectives, Merger and Acquisition Advisory, Private Equity, Valuation

Settings

Switzerland
April 2002

Type

Field Research

Available Languages

English

Related material

Teaching note, Video

IMD case studies are distributed through case clearing houses. In order to browse the collection and purchase copies please visit the links below.

The Case Centre

Cranfield University

Wharley End Beds MK43 0JR, UK
Tel +44 (0)1234 750903
Email [email protected]

Harvard Business School Publishing

60 Harvard Way, Boston MA 02163, USA
Tel (800) 545-7685 Tel (617)-783-7600
Fax (617) 783-7666
Email [email protected]

Asia Pacific Case Center

NUCB Business School

1-3-1 Nishiki Naka
Nagoya Aichi, Japan 460-0003
Tel +81 52 20 38 111
Email [email protected]

IMD retains all proprietary interests in its case studies and notes. Without prior written permission, IMD cases and notes may not be reproduced, used, translated, included in books or other publications, distributed in any form or by any means, stored in a database or in other retrieval systems. For additional copyright information related to case studies, please contact Case Services.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

This case study is part of a series

Alex de Werra at TCFG - The kermel mandate
Argos Soditic - The Kermel proposal

This case study is part of a series

Alex de Werra at TCFG - The kermel mandate
Argos Soditic - The Kermel proposal

Alex de Werra at TCFG - The kermel mandate

By Benoit F. Leleux and Henri Bourgeois
Case reference: IMD-1-0204 ©2004

Summary

In April 2002 Alex de Werra, director at TCFG, was contacted by a fellow alumnus of IMD for advice on a possible management buyout of Kermel, a Fre...

Reference IMD-1-0204

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Browse all topics

Argos Soditic - The Kermel proposal

By Benoit F. Leleux and Henri Bourgeois
Case reference: IMD-1-0203 ©2003

Summary

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...

Reference IMD-1-0203

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Browse all topics

Keep reading

Article

The tragedy of the horizon: A contracting account

The “tragedy of the horizon” captures the gap between long-horizon climate damages and the shorter horizons of corporate decision-making. We provide a contracting account of this idea using a deliberately standard CARA-normal moral-hazard model. U...

Finance Economics

By Christos Cabolis and Karl Schmedders

in Economic Letters

September 2026, vol. 268, 113154, https://doi.org/10.1016/j.econlet.2026.113154

Article

The CFO’s balancing act: Delivering more intelligent growth

The era of unchecked expansion has passed – for Søren Westh Lonning, CFO at FinTech Pleo, the challenge now is to drive balanced, disciplined growth.

Finance Finance Leadership Technology Management

By I by IMD

in I by IMD

Case Study

Entrepreneurship through acquisition: NCA's operator-led search fund approach

Entrepreneurship Strategy Finance

By Benoit F. Leleux

Case Study

A thread of hope: Gender lens due diligence on Bankamoda

Diversity and Equity and Inclusion Entrepreneurship Finance Social Innovation Sustainability

By Vanina Farber and Shih-Han Huang

Article

Why “business partnering” is no longer enough

Discover how CFOs are evolving beyond traditional roles to become strategic enablers focused on value-driven decisions and intelligent finance strategies.

Finance Finance Leadership Strategy

By I by IMD

in I by IMD

Article

Why CFO leadership matters more in volatile times

CFO leadership in volatile times is critical as finance leaders use discipline, risk insight, and strategy to guide companies through disruption

Finance Leadership

By I by IMD

in I by IMD

Article

Why the Fed is not ready to bet on AI just yet

Kevin Warsh focused his first conference as Federal Reserve chair on June 17 on a familiar problem: fast-rising prices fuelled by the Iran war. Yet another challenge facing central banks goes beyond the immediate inflation shock. As investors plac...

Artificial Intelligence Finance

By Karl Schmedders

in The National

29 June 2026

Podcast

Banking’s biggest digital shift - Ralph Hamers - IbyIMD

Ralph Hamers on leading banking’s biggest digital shift: why banks must be tech-forward and how AI could redefine financial advice.

Finance Innovation Leadership Strategy

By Murat Tarakci

in I by IMD

Book

Finance confidential: Corporate finance insights for business leaders

Every executive eventually hits a moment of truth. A new project, a bold expansion, a promising acquisition, and suddenly the hard questions are right in front of you: Will this venture be profitable? Will it generate cash flow? How much capital w...

Finance

By Salvatore Cantale and Polina Bochukova

Article

Banks must respond strategically to these six shifts

The six powerful shifts affecting a bank’s ability to operate in the future and why bank leaders cannot afford to ignore them

Finance

By Salvatore Cantale

in I by IMD

The tragedy of the horizon: A contracting account

By Christos Cabolis and Karl Schmedders
in Economic Letters September 2026, vol. 268, 113154, https://doi.org/10.1016/j.econlet.2026.113154

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Economics

Browse all topics

The CFO’s balancing act: Delivering more intelligent growth

By I by IMD
in I by IMD

Summary

The era of unchecked expansion has passed – for Søren Westh Lonning, CFO at FinTech Pleo, the challenge now is to drive balanced, disciplined growth.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Finance Leadership

Technology Management

Browse all topics

Entrepreneurship through acquisition: NCA's operator-led search fund approach

By Benoit F. Leleux
Case reference: IMD-7-2513 ©2026

Summary

The case investigates the supported search fund model pioneered by Novastone Capital Advisors (NCA) through which mid-career executives can achieve their dreams of becoming entrepreneurs though the acquisition of an SME. NCA provides support through the various phases of the program, from talent selection, training, target searches, due diligence, M&A, value creation and exit engineering.

Reference IMD-7-2513

Organization Novastone Capital Advisors

Industry Finance and Insurance, Private Equity

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Entrepreneurship

Strategy

Finance

Browse all topics

A thread of hope: Gender lens due diligence on Bankamoda

By Vanina Farber and Shih-Han Huang
Case reference: IMD-7-2516 ©2026

Summary

The Bankamoda case looks at due diligence in the impact investing context. The protagonist, Estefanía Abello, is a Colombia-based senior associate at the Swiss AlphaMundi Group (AMG), an impact first but very commercially minded impact investor that invests in Africa and Latin America. Since 2017, AMG had been integrating gender analysis throughout its investment process. The case opens with Abello having completed the due diligence and considering her recommendation to the AMG Investment Committee on whether to invest in Bankamoda, a women-founded, women-led fintech offering loans to the underbanked micro, small and medium enterprises (MSMEs) in the apparel and textile industry in Columbia. While this startup fit the profile gender lens investing perspective, the investment also carried significant risks. Students assume the role of Abello and need to balance impact and financial considerations and consider risk mitigation strategies as they make a recommendation. Through this case, students can experience a real impact investing due diligence, understand gender lens investing, explore the layers of considerations needed to build a compelling investment case and simulate how best to present proposals to an investment committee.

Reference IMD-7-2516

Organization Bankamoda

Industry Finance and Insurance, Investment Management;Finance and Insurance, Financial Services

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Diversity and Equity and Inclusion

Entrepreneurship

Finance

Social Innovation

Sustainability

Browse all topics

Why “business partnering” is no longer enough

By I by IMD
in I by IMD

Summary

Discover how CFOs are evolving beyond traditional roles to become strategic enablers focused on value-driven decisions and intelligent finance strategies.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Finance Leadership

Strategy

Browse all topics

Why CFO leadership matters more in volatile times

By I by IMD
in I by IMD

Summary

CFO leadership in volatile times is critical as finance leaders use discipline, risk insight, and strategy to guide companies through disruption

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Leadership

Browse all topics

Why the Fed is not ready to bet on AI just yet

By Karl Schmedders
in The National 29 June 2026

Summary

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Artificial Intelligence

Finance

Browse all topics

Banking’s biggest digital shift - Ralph Hamers - IbyIMD

By Murat Tarakci
in I by IMD

Summary

Ralph Hamers on leading banking’s biggest digital shift: why banks must be tech-forward and how AI could redefine financial advice.

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Innovation

Leadership

Strategy

Browse all topics

Finance confidential: Corporate finance insights for business leaders

By Salvatore Cantale and Polina Bochukova
Published by Independently published ©2026

Summary

Available Languages English

Contact

Research Information & Knowledge Hub for additional information on IMD publications

Related topics

Finance

Browse all topics