...an initial public offering (IPO), various debt-funding alternatives; and, the possibility of a strategic partnership. it must be clear to the customer how you are adding value to its business if you want this recommendation to be executed and get paid for it. What are the business circumstances of this company and how do they translate into the need for more or less cash-flow flexibility? Does the existing capital structure—assuming the company can’t change its business practices—provide the company with the cash flow flexibility (more or less) that it wants? Why? In terms of the possible alternatives you are considering which would you recommend to the company—and why? Make your pitch! In so doing, consider using the cost versus flexibility framework. Business Circumstances; Flexibility Prada currently requires a significant amount of capital both to refinance debt that is maturing in the next six to twelve months and the planned financing of growth in the Asian (especially Chinese) markets. Since financial markets aware urgent need Prada, are to raise capital, it is important that the Board of Directors of a credible strategy to increase the required minimum capital of 1 billion? to develop. Although the press was suggesting that Prada is to do an IPO, the company has tried this several times in the past without success, mainly because of poor timing (9/11, the SARS outbreak and the ongoing global financial crisis and the European sovereign debt crisis). China represents...
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...“FINANCE” Course “PRADA: TO IPO OR NOT TO IPO: THAT IS THE QUESTION, AGAIN” case analysis Brief summary of the case with the emphasis on managerial problems that Prada faces. Prada currently requires a significant amount of capital both to re-finance debt that is maturing in the next six to twelve months and to finance its intended growth into the Asian (especially Chinese) markets. Since financial markets are aware of Prada’s pressing need to raise capital, it is important for the board of directors to develop a credible strategy for raising the necessary capital of at least €1 billion. Although the press has been suggesting that Prada will do an initial public offering, the company has tried this several times in the past with no success, mainly because of bad timing (9/11, the SARS outbreak, and the ongoing global financial crisis and European sovereign debt crisis). The board has approached Guido Santini of the investment bank Grupo Capo Milano to come up with a number of credible alternatives and a strategy for raising the needed capital. 1. What is the current and future outlook for the luxury goods segment over the next couple of years? How should Prada position itself to prosper in this market? Luxury goods segment proved to be resilient to the economic crises and had consistently grown from 1994 till 2010.The luxury industry grew approximately by 2% per year until 2007, and by 1% per year from 2007 to 2010. Beginning from...
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...双语教学： □是 ■否 修读方式： ■必修 □选修 □辅修 试卷页数 共 18 页 考试时间： 年级专业： 需计算器： 机考座位： 90 分钟 ■是 □否 号机 Case material: PRADA: TO IPO OR NOT TO IPO: THAT IS THE QUESTION, AGAIN It was January 25, 2011 and Guido Santini of the investment bank Grupo Capo Milano had just been asked to prepare a recommendation on how Prada should raise the money for its planned expansion in Asia and to pay the significant portion of its long-term debt that was maturing within one year. Although he had known this request would be coming at some point, he had expected a bit more time. His recommendation had to be presented to the Prada Board of Directors at their annual general meeting scheduled in two days, on January 27. THE MISSION The board requested that Santini prepare a report recommending and ranking alternatives for raising over 1 billion euros within the next six to 12 months. With more than €1 billion of debt maturing within 12 months (almost half in the next six months), Prada needed to have a credible plan in place to meet these obligations. In addition to the capital to refinance its existing debt, Prada had identified Asia as an area for future growth, and this growth also required capital. Asia was currently experiencing significantly higher growth than other parts of the world, and Prada wanted to be able to take part in and benefit from this. Consequently, Santini’s job was to recommend to the board how Prada could best secure the necessary capital to pay its maturing loans and start its expansion in the...
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...Sachs 2011 Annual Report For Prada, the time had come to capitalize on the power of a global brand In 2010, Prada, one of the world’s most recognizable fashion brands, knew it was time to go public, and that the place to do it was Hong Kong. The reason for choosing Hong Kong was simple: Asia, with its fast-growing economies, had become Prada’s biggest growth market. By 2010, Asia had rivaled Europe and had outpaced North America, accounting for 43 percent of Prada’s annual sales. With Goldman Sachs’ London investment banking team working with the family-owned company, Prada began preparing to go public in 2007. Postponed by the global financial crisis, the IPO was moving forward again in 2011, with Goldman Sachs as lead underwriter. As the IPO approached, work on the complex transaction stretched across continents and disciplines. While our London team worked with the company on capital markets strategy, our Hong Kong investment banking team took responsibility for deal execution. In marketing the offering worldwide, Goldman Sachs helped Prada present its story to more than 250 leading investors. The IPO raised $2.5 billion. It was the largest consumer goods IPO ever in Hong Kong, and the largest IPO to date of any global luxury brand. The offering enabled Prada to reduce its debt while funding future growth across China and the rest of Asia. By 2015, China alone is estimated to comprise 20 percent of the world’s luxury goods market. Prada is now positioned to make the most...
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...CASE STUDY - International Corporate Finance Chủ đề: PRADA: PHÁT HÀNH CỔ PHIẾU RA CÔNG CHÚNG LẦN ĐẦU HAY KHÔNG, MỘT LẦN NỮA ĐÓ LÀ VẤN ĐỀ Ngày 25/01/2011, Guido Santini của ngân hàng đầu tư Grupo Capo Milano vừa được yêu cầu chuẩn bị một bản đề xuất về phương thức mà Prada nên áp dụng để huy động vốn nhằm thực hiện kế hoạch mở rộng tại châu Á và trả một phần nợ dài hạn đáng kể sẽ đáo hạn trong một năm. Dù biết sẽ được yêu cầu thực hiện đề xuất này tại một thời điểm nào đó, ông vẫn kỳ vọng yêu cầu này đến sau một thời gian nữa. Bản đề xuất của ông phải được thuyết trình trước Hội đồng quản trị Prada trong đại hội cổ đông thường niên dự kiến sẽ diễn ra trong hai ngày tới – ngày 27/01. SỨ MỆNH Hội đồng quản trị yêu cầu Santini chuẩn bị một báo cáo, trong đó đề xuất và xếp hạng các giải pháp để gom hơn một tỷ euro trong vòng từ sáu đến 12 tháng tới. Với số nợ hơn một tỷ euro đáo hạn trong vòng 12 tháng (gần bằng một nửa số nợ trong sáu tháng sau đó), Prada cần phải có một kế hoạch tin cậy để có thể đáp ứng được những nghĩa vụ này. Bên cạnh số vốn để trả khoản nợ vốn có, Prada coi châu Á là khu vực cho hãng phát triển trong tương lai, và sự phát triển này cũng đòi hỏi vốn. Hiện tại, sức tăng trưởng của châu Á cao hơn các khu vực khác trên thế giới, và Prada muốn gia nhập và thu lợi ích từ thị trường này. Theo đó, công việc của Santini là đề xuất với hội đồng quản trị về phương thức bảo đảm một khoản vốn cần thiết để thanh toán cho các khoản vay đáo hạn và bắt đầu...
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... Huge profits are realized when the company invites the members of the public to subscribe its stake through (IPO) initial public offer. On the other hand, a company might accrue massive losses perhaps due to shares volatility (Maskell & Baggaley, 2003). It is of the essence that a Company evaluates the proposed investment decision of getting enlisted in foreign countries stock exchange market they choose to invest. Due diligence will enable the Company access all information relating to the movement of stock and share prices. This information will allow a company to avoid investing in equity markets that are highly volatile (Maskell & Baggaley, 2003. (Maskell & Baggaley, 2003), defines foreign-exchange risk fluctuations in the prices or value of an investment due to changes in foreign exchange rates or exchange rates. This risk is also known as exchange rate risk or merely currency risk; it is simply the loss an investor accrues during a long or a short position due to unfavourable movements in the exchange rates. Currency risk mostly affects international businesses that are more into imports and exports. The Case Study “Does the Devil Really Wear Prada?” In the case study, as presented by (Daniels, Radebaugh & Sullivan, 2015), I do not agree with this decision of Prada listing an IPO in the Hongkong Stock Market. I disagree because Prada might be adversely affected by the exchange-rate risk. Again their shares might be...
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...There is a good example of the essay.Summary- Some big companies such as Prada decided to delay or even canceled their IPO plans because of the current stock situation. One analysis said that the IPO volume will fall another 25 percent annually in 2009 after the 45 percent decline in 2008. In 2007, almost 250 IPOs took place, but in 2008 only less than 50 IPOs came in the global market. Even though Visa succeeded to get the money by a U.S company for $17.9 billion for its IPO, which was the largest ever float, the number of IPO is not likely to increase. One main reason to stop the number of IPO from going up come from the fear that investors will lose their money as they did in the past 18 months in the stock market. Under this circumstance, only predictable companies such as healthcare and utilities can make their IPO successful because they meet current customer demand- safety. However, there are some hopes in Asian market. Chinese government’s stimulus package will improve the Chinese economy, which leads to the number of increase for IPO.It is hard for from small to big companies to enter into the stock market due to the current economy. Due to the number of decrease for IPO, Invest backings such as Goldman sachs must be hard to keep its earning because they have few contracts to underwrite IPO. As the article mentioned, it should be hard for companies to expect when companies lunch IPO because there is a three-to four month lag between the decision to push ahead with...
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...relevancia Brasil. Prada se inserta en el mercado de manera significativa desde 19… con la visión de Miucci Prada (nieta del fundador) junto con la de su esposo a cargo de la empresa. En lo que respecta al futuro del mercado, no se prevén cambios significativos en el mismo. Se espera que el mercado Europeo como el americano siga creciendo (tasa del 4-5% anual por los próximos cinco años) como el Japonés (1-2% por año durante los próximos cinco años). El mayor crecimiento esperado es en Asia (10-11% anual) con especial énfasis en China (15% anual). 2. 3. Los objetivos que tiene en mente la dirección de Prada son el pago de sus obligaciones financieras y la expansión al mercado Asiático (al ser una oportunidad atractiva de crecimiento). Las opciones que analiza son tres: a. Emitir acciones públicas: al igual que como había intentado en diversas oportunidades, Prada puede realizar una IPO (“Initial Public Offer”). Esta opción trae aparejada un aumento en la regulación por parte de entes estatales como una pérdida de control para la familia Prada. Aún cuando las acciones emitidas sean sin derecho a voto, se estaría duplicando el PN de la empresa (1.000.000 de “””USD””” estimados). Además Prada se somete a la incertidumbre de no saber cómo el mercado va a aceptar o no sus acciones. Teniendo en cuenta esto Prada debería someterse a un tedioso proceso de “due diligence” para ser aprobada su operatoria en la bolsa. b. Parthnership Estratégico: Prada podría...
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...Interbrand: Daniel Diez: (212) 798-7729 Daniel.Diez@interbrand.com Porter Novelli for Interbrand: Alan Marcus: (212) 601-8443 Alan.Marcus@porternovelli.com INTERBRAND RELEASES 13TH ANNUAL BEST GLOBAL BRANDS REPORT Coca-Cola retains the #1 spot — Apple jumps to #2; Facebook enters Top 100 as Google overtakes Microsoft NEW YORK, New York, October 2, 2012 – Coca-Cola, Apple and IBM lead Interbrand’s 13th annual Best Global Brands report. While Coca-Cola retained its #1 position, Apple jumped to #2 with stellar sales in both developed and emerging markets over the last year. Social media giant, Facebook (#69), enters the report after making headlines as the third largest IPO in US history, and Google (#4) experienced a 26% increase in brand value over the last year, exceeding rival Microsoft’s (#5) brand value for the first time in the history of Interbrand’s report. Interbrand, the world’s leading brand consultancy, publishes its Best Global Brands report of the world’s 100 most valuable brands on an annual basis. Interbrand’s methodology - the first of its kind to be ISO certified – analyzes the many ways a brand touches and benefits an organization, from driving bottom-line business results to delivering on customer expectations. To develop its report, Interbrand examines the three key aspects that contribute to a brand’s value: • The financial performance of the branded products or service • The role the brand plays in influencing consumer choice • The strength the brand...
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...The Burberry business model: creating an international luxury fashion brand Christopher M. Moore and Grete Birtwistle Introduction The viability, or otherwise, of a fashion brand is dependent upon the efficacy and appropriateness of the decisions of those responsible for its management. There are numerous examples of brands that have prospered and/or withered as a result of the business models that management have deployed in order to achieve their strategic (or not so strategic) objectives. Gucci, the Italian luxury brand is a case in point. In the 1950s the brand enjoyed significant success. It was the status brand of choice for Hollywood film stars and European royalty. However, just over a generation later, the brand suffered a loss of cachet and the once profitable business made significant losses. The adoption of a business strategy (which sacrificed management control over product development and distribution in favour of seemingly indiscriminate licensing agreements), undermined the credibility of Gucci as an exclusive and aspirational fashion brand (Jackson and Haird, 2003). Tom Ford’s arrest of Gucci’s decline in the 1990s has been well documented (Moore and Fernie, 2004), and has been attributed to his adoption of a business model that maximised internal controls with respect to product sourcing, brand communications and distribution. Ford’s legacy has been the implementation of an integrative business model which maximised “back-end synergies” in relation to logistics...
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...Case Studies Solutions Case Studies Solutions,Article Writing,Assignments,Research Work,Home Work MenuSkip to content Home How We Work ? Refund Policy How to Order ? Disclaimer Contact Us Finance Cases List POSTED ON MARCH 8, 2013 Hello, If u want us to solve any case study from below list, do contact us anytime, We are here to provide the experience, expertise, and professionalism that you are looking for , Our tutors are available 24/7 to assist you what you need, Click Here to submit your Order. ======================================================================================= Acquisition of Consolidated Rail Corp. by Benjamin C. Esty Airbus A3XX: Developing the World’s Largest Commercial Jet by Benjamin C. Esty American Chemical Corp.by William E. Fruhan, John P. Goldsberry American Home Products Corp.by David W. Mullins AQR’s Momentum Funds by Daniel B. Bergstresser, Lauren H. Cohen, Randolph B. Cohen, Christopher Malloy Arundel Partners: The Sequel Project by Timothy A. Luehrman AXA MONY by Andre F. Perold, Lucy White Beta Management Co. by Michael E. Edleson Butler Lumber Co. by Thomas R. Piper Cartwright Lumber Co.by Thomas R. Piper Citigroup 2007: Financial Reporting and Regulatory Capital by Edward J. Riedl, Suraj Srinivasan Clarkson Lumber Co. by Thomas R. Piper Cooper Industries, Inc. by Thomas R. Piper Cost of Capital at Ameritrade by Erik Stafford, Mark L. Mitchell Debt Policy at UST, Inc. by Mark L. Mitchell Dell’s Working Capital...
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...determined largely by the adoption of business models which, on occasion, have been detrimental to the company’s performance. For the financial year ending 31 March 1998, Burberry saw its annual profits drop from £62m to £25m, leading financial analysts to describe it as “an outdated business with a fashion cachet of almost zero”. However, from 1997, at the instigation of a newly appointed chief executive, Rose Marie Bravo, Burberry has radically re-aligned its business model and has enjoyed, as a result, significant improvements in its business performance. Drawing from extensive documentation that was published by Burberry in support of their initial public offering (IPO), this paper will provide a review of the history of Burberry; evaluate Burberry’s re-positioning strategy as defined by the firm in their IPO prospectus; and critically delineate Burberry’s current business model. Electronic access The Emerald Research Register for this journal is available at www.emeraldinsight.com/researchregister The current issue and full text archive of this journal is available at www.emeraldinsight.com/0959-0552.htm International Journal of Retail & Distribution Management Volume 32 · Number 8 · 2004 · pp. 412-422 q Emerald Group Publishing Limited · ISSN 0959-0552 DOI 10.1108/09590550410546232 The viability, or otherwise, of a fashion brand is dependent upon the efficacy and appropriateness...
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...Increasing Brand Value: A Masterclass from the World's Strongest Brands By Anastasia Kourovskaia, Vice President of Millward Brown Optimor A brand is an intangible yet powerful corporate asset. Merlin Entertainment’s recent flotation and Twitter’s IPO have both highlighted the impact of strong branding and marketing on a successful listing and a share price that soars. Like any asset, a brand needs to be understood, maintained and invested in – and by measuring a brand’s value a company can quantify exactly how much it contributes to revenues and growth, and develop strategies to manage it better. Looking at the strongest brands in the BrandZ™ Top 100 Most Valuable Global Brands ranking across the last eight years, Anastasia Kourovskaia, Vice President of Millward Brown Optimor, shares the common factors that have enabled them to build long-term brand value. It is widely acknowledged that strong brands enable businesses to generate a sales volume and price premium that improves revenues and margins, attract and retain the best employees and facilitate expansion into new products and markets. Analysis by Millward Brown Optimor shows that investment in strong brands lead to consistently higher share prices. Companies with strong brands also lose value less precipitously in a recession, and emerge with a sustainable competitive advantage. This makes understanding how much business value is driven by a brand critical for marketers. Brand valuation quantifies the financial value...
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...661-3208; fax (519) 661-3882; e-mail cases@ivey.uwo.ca. Copyright © 2011, Richard Ivey School of Business Foundation Version: 2011-11-07 INTRODUCTION It was late March 2007, and Richard McDonald, a managing director at Federal Securities (Federal), was briefing his team on a financing proposal for Lululemon Athletica (Lululemon). Federal Securities was a mid-sized investment bank and in recent years, had managed several capital issues for businesses in the retail sector. McDonald had been monitoring Lululemon’s progress over the past few years and had been impressed by the company’s unique positioning and its rapid growth. He felt it might be timely to approach the firm with a proposal to raise new funds through an initial public offering (IPO) or a debt issue. McDonald felt there were two significant reasons for pitching Lululemon on a financing proposal. First, raising funds through a stock offering would allow the company’s founder, Dennis Wilson, and the two private equity firms, Advent International and Highland Capital Partners, to realize the value...
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...include, accessories, luggage and briefcases and many more exclusive Coach stores and Boutiques were opened. By the late 1980`s there were 12 exclusive Coach retail stores as well as approximately 50 boutiques selling Coach products within lager department stores. While Coach initially grew it started to lag behind its competitors in terms of trendiness and sales began to decline. In 1996 Krakoff joined Coach and he was instrumental in positioning Coach as an ‘accessible luxury brand`` for it was understood that price was a source of competitive advantage for the brand in the luxury market. In October 2000, Coach went public under the name of Coach Inc. By 2005Coach`s revenues tripled and their share price increased more than 900 % since their IPO in 2000. The Organization Today: Coach is one of the most recognized fine accessories brands in the U.S. and in targeted international markets. Coach is a leading American marketer of fine accessories and gifts for women and men. Their product offerings include women’s and men’s bags, accessories, business cases, footwear, jewellery, sun wear, travel bags, watches and fragrance. Coach’s distribution strategy is multi-channel. Coach operates in two segments: Direct-to-Consumer and Indirect. The Direct-to-Consumer segment includes sales to consumers through Company-operated stores in North America, Japan, Hong Kong, Macau, mainland China, Singapore, Taiwan and the Internet. The Indirect segment includes sales...
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