Our case this semester will be Radnet, Inc.: An Acquisition. You will find the case in your coursepack that you purchased from Harvard at the beginning of this semester.

The focus of this case is on financial strategy.

Instructions

Recommend which financing option they should take. In your recommendations include the terms and size of each suggested tranche.

Support your recommendations with detailed spreadsheets that simulate the effects on debt service (and profitability) under the following scenarios:

Expected or normal cash flows

5% decrease in cash flow

10% decrease in cash flow

Your discussion supporting or justifying your recommendation will include data generated by your spreadsheets as well as consideration of the key characteristics of debt financing you have proposed.