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.
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.
Research Information & Knowledge Hub for additional information on IMD publications