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APA
Subject:
Accounting, Finance, SPSS
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Palamon Capital Executive Summary Accounting, Finance, SPSS Essay

Essay Instructions:

please read the case (Palamon Capital) and write the executive summary about the Private Equity Investments & the Market, and the key risk part. I will three examples (two of them are pdf format and one is in word) you can looking for. Also I give an excel you can use.
https://www(dot)investopedia(dot)com/terms/p/privateequity.asp
https://www(dot)mckinsey(dot)com/industries/private-equity-and-principal-investors/our-insights/private-equity-exit-excellence-getting-the-story-right#
https://hbswk(dot)hbs(dot)edu/Pages/browse.aspx?HBSTopic=Private%20Equity
There are three extra source maybe helpful




 




FIN 4596 Spring 2020 Guidelines for valuation in Palamon Capital Case Palamon Capital is a UK-based private equity fund who faces the decision whether to invest in an Italian software company. Out task (done in group with revision) is to evaluate the attractiveness of the investment, a valuation of the target with its new capitalization, and an assessment of the proposed structure. Discussion Questions: 1. What do we know about the unique features in Private Equity investment and PE market? E.g., Introduce the practice, goals and process of private equity investing; Compare PE investing attributes with public market investing; Discuss the diffusion of PE investing practice around the world; Or how important are exit strategies in the PE market? 2. What is the estimated equity value of TeamSystem using the FCFs and cost of capital (14%) given in the case? [Note: You need to first find the TV using the perpetuity method and the given FCFs, g, and r, then find the PV of all the CFs to estimate Firm Value. Equity Value is the difference between this Firm Value and Debt (given in case as ITL46 billion in Exhibit 9.) 3. Suppose that comparable firms have a market value debt/equity ratio of 30% and are taxed at the similar rate as TeamSystem. What is the unlevered beta for TeamSystem.? 4. Compute an unlevered cost of equity for TeamSystem. using the 10-year Italian government bond rate and a market risk premium = 8%. Use this discount rate to re-compute the value of the free cash flows. 5. Compute the annual interest tax shield based on the debt outstanding, tax rate, and cost of debt capital, ALL of which are given in the case. Then find the present value of this finite series of annual Tax Shields. 6. Add your answers in #4 and #5 to find the Adjusted Present Value (APV) of the firm. Find the Equity Value using the same approach as in #2 above. How does this Equity Value compare to your answer in #2? WHY is it different? How does this Equity Value help the PE investor optimize their offer and deal structure? Guidelines for Executive Summary in Palamon Capital Case The Executive Summary submission should begin with a cover page with your name, the title (that specifies the type of document, the name of the company, and the financial issue explores), and then continue with the main body TWO-page with the key issue(s) at hand and your recommended solution to that problem(s). Remember to focus and to be as clear and concise as possible in describing the problem, the results, and the solution; the goal is to help senior managers make a more informed decision moving forward. The Executive Summary (main body) should be TWO-page long document (standard margin, 12-point font), internally consistent, and free of spelling, sentence structure, or factual errors. The analysis should be written in paragraphs, not numbered bullets responding to some or all discussion questions. Please insert page numbers and use subheadings as needed for clarity, flow and organization. Please keep in mind that you are supposed to report to senior executive(s) within the firm who knows the history of the firm but may not be very familiar with finance. Do not review background known to them and Write clearly in a non-technical way so that any bright firm executive will understand the problem quickly and your recommended response to that problem. You may add up to two pages of more detailed analysis of the points raised in your executive summary. Remember those additional analyses are there for reference only, if the reader would like to confirm or further explore your main points in the summary. In the end, you will submit TWO files to the Assignment: the PDF file containing the Executive Summary (and the additional analysis if any), and the Excel file of your forecasted financial statements. Be sure to retain the original Excel formatting so that instructor may click on each cell to determine its derivation. Team Presentations Two Groups will present their findings for Palamon case. Please start the presentation by sharing with us the most interesting facts you discovered about the Private Equity investment and PE market, and then explain how the APV method helps the PE investor optimize their offer and deal structure. PRACTICE!!!

Essay Sample Content Preview:

Executive Summary
By:
Private Equity investment and PE market
Palamon Capital Partners is seeking to invest in an Italian software company Team System S.P.A. as part of expanding and diversifying operations. Private equity (PE) investments target private companies, buyouts, and even the delisting of public equity. Investments in private equity funds force investors to focus on a long-term perspective mostly for a 5-7 years span. The long-term strategy focuses on the buy-and-hold approach, unlike the publicly held companies where is a higher frequency of the transactions and sometimes recalibrate of portfolio occur. In the proposed leveraging restructuring the sources of cash are debt at $ 46,000 million and excess cash at $ 15, 000 million. Palamon has increased the PE investments from € 4, 271 million in 1989 to € 25,116 million in 1999. The U.S. PE market is more robust than the European market, but still, the latter has grown over the past few decades and second only to the American market. Private equity acquires companies that have the...
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