Question
After years of moderate to slow growth, the privately-held plastics manufacturer, Norcorp Inc., has been acquired by a mid-tier private equity firm. The private equity
After years of moderate to slow growth, the privately-held plastics manufacturer, Norcorp Inc., has been acquired by a mid-tier private equity firm. The private equity firm wishes to optimize all aspects of Norcorp's operations and finances (especially the latter) so that Norcorp may be sold to a strategic acquirer in 2-3 years. Your finance consultancy firm has been retained to assist in the process of optimizing Norcorp'sfinances, starting with raising additional capital for expanded operations and, possibly, acquiring additional capabilities. wr an Executive Summary discussing the various pros, cons, and tradeoffs of both equity financing, and debt financing, and whether some mix of the two would be appropriate for Norcorp's financing needs.
You should pay particular attention to issues of control, risk (financial, operational, mission, etc.), and sustainability. This should be done from the perspective of (primarily), Norcorp itself but, also, from the perspective of the investors in Norcorp's pending financing issue.
Required:
1. Calculations Necessary {actual number crunching and end results}:
2. Interpretation {conclusions, solutions}
3. Implications and Consequences {what is the end result, unintended consequences?}
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