5.5 Instructions
· View the video Basic Leveraged Buyout.
· View the video KKR Henry Kravis. Carefully consider the financial and ethical implications of the company’s approach to financing.
· Study this workshop’s devotional about the implications of debt.
· Research and identify an example of a recent leveraged buyout that interests you. You may choose any company you like, as long as it involves an LBO transaction and you can find enough information to shed light on the deal. Use OCLS and the internet to conduct research on the reasons for the transaction and the outcome.
· Prepare a paper analyzing the ethical and financial implications of the selected company’s LBO transaction:
Provide a brief summary of the company and its LBO transaction.
Explain the justifications given for the company’s decision to execute an LBO.
Evaluate the impact of the LBO on the company’s stakeholders, including its shareholders and employees.
Assess whether the LBO was considered successful and explain why.
Explain, based on your informed opinion and research, whether executing the LBO was a good decision.
Review the 5.1 Exercise regarding the biblical perspective on debt. Evaluate the LBO strategy based on biblical principles and cite a Bible verse that supports your position.
· Be sure to provide a detailed analysis and assessment that demonstrates your critical thinking and understanding of financial analysis. Your finished paper should be 500–600 words in length and include at least three sources in addition to your biblical reference.
· Prepare your paper in Microsoft Word in a professional manner, using proper spelling, grammar, and APA style. Include a references list. Be sure to appropriately cite your sources for any commentary or analysis you rely upon.