LBO Project & Presentation
The industry theme of this project is leveraged buyouts in the consumer goods industry. In addition to conducting in-depth research on the industry and company, It is important for analysts to research for suitable acquisition targets, and design corresponding business strategies to increase company value.
It is also required to use appropriate capital structures, develop timely debt repayment plans, and devise entry and exit strategies and bids. This aims to achieve the targeted capital return multiples and internal rate of return (IRR). During the project process, skills in LBO and DCF financial modeling will also be developed.
Winning Team
The OIC Taipei's LBO project presentation for this semester successfully concluded on May 11 2024. Congratulations to Group 3 for being selected as the winning team!
Below, we will introduce the project's content and presentation, in order to demonstrate how we conduct the LBO project.
OIC appreciates the analyst for sharing their in-depth and professional results and meticulously prepared presentations. We hope this sharing will help more people understand the logic behind private equity fund IC meeting and the key considerations in formulating related strategies, and inspire interest in the primary market related fields.
Awarded presentation
Team Introduction
Target Company｜Weyco Group
Awarded Analyst｜Chad Chen, Aaron Yu, Danny Hsieh, Michelle Chang
slide preview (8/24)
Winning Team Project Introduction
OIC Capital's leveraged buyout of Weyco Group, a prominent player in the footwear industry, aims to achieve a robust 32.6% IRR and 4.1x MoM by leveraging Weyco's solid capital structure and esteemed brand portfolio. The rationale behind the acquisition centers on optimizing costs, expanding digital channels, and embracing sustainable footwear trends. The strategy involves diversifying suppliers to mitigate risk, expanding e-commerce presence for accelerated growth, and pursuing strategic acquisitions like Allbirds to capture evolving consumer preferences. The deal is structured with a 25% premium to the current stock price, primarily financed through term loans. The exit strategy entails a sale to Deckers, leveraging operational synergies and strategic alignment, ultimately driving significant EBITDA growth, multiple expansion, and effective debt management to deliver compelling returns.
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