Case:
Berkshire Partners: Bidding for
Carter’s
Questions:
• How does Berkshire
Partners create value?
• Does Carter’s fit
with the Berkshire investment philosophy? Why is Investcorp selling?
• How much firm free
cash flow will Carter’s generate in the next five years. (2002-2006) based on
management estimates?
• How realistic are
the management forecasts in light of historical performance of Carter’s?
• What should the
Berkshire team bid for Carter’s?
Submission:
You should submit
only one document, and it should be in the Word format. However, make sure to
display all necessary work by pasting relevant Excel tables in your document.
The word limit for this coursework is 2,500 words
The Questions will be
both qualitative and quantitative and will ask for knowledge and analysis. The
underlying theme in assignment is to assess corporate value in a specific
corporate context and to make use of this assignment in strategic and financial
decision making. The marking distribution will reflect the students grasp and
synthesis of economic and financial knowledge gained in the course- i.e. their
ability to move beyond quantitative financial modeling which relies on
management forecasts provided in the case studies to a more nuanced
quantitative and qualitative analysis which questions the robustness and
plausibility of management forecasts.
Note:
The precise meaning of a case is sometimes unclear. If you
think that the wording is in some way ambiguous then you should state clearly
your interpretation of the case, and you should identify any assumptions which
you make. If you are clear and your interpretation is reasonable then you will
not lose marks simply because your answer is not identical to mine. Youwillhowever
lose marks if your working is unclear. Pay special attention to the format of
your document: it needs to be presented in such a way that it is clear to the
marker how your analysis has been performed.
