Evaluate the performance of HCA. What challenges does it face without the LBO? How does the LBO resolve any of the challenges?
Evaluate the performance of HCA. What challenges does it face without the LBO? How does the LBO resolve any of the challenges?
HCA Healthcare
1- Why is the senior management group of HCA healthcare interested in an LBO of their company?
2-Evaluate the performance of HCA. What challenges does it face without the LBO? How does the LBO resolve any of the challenges?
3-Estimate the maximum price that the LBO firms can pay for HCA, using two approaches: one based on Exhibits 9 and 10; the other based on Exhibits 12 and 13.
4-Compare your results in Q3 to the results in Exhibit 11 and reconcile them.
5-Is the offer fair to shareholders? Explain!
6-What conflicts arise for shareholders because of the LBO process.
7-As a member of the Special Committee, make your recommendation about the deal.