Bain Capital’s “Take Private” of China Fire

The case is on the 2011 buyout of China Fire, a NASDAQ-listed Chinese fire protection firm. The MBO, backed by private equity firm Bain Capital, comes amid a wave of ‘take China privates’ aimed at exploiting valuations depressed by fraud scandals at some US-listed Chinese firms. In response to the USD9 cash bid, China Fire’s board has formed a Special Committee to negotiate terms. As the committee’s financial advisor, Barclays Capital must conduct financial due diligence, including the valuing of China Fire with various methods. Learning objectives include: 1. Being able to value a company with different techniques. 2. Knowing the different rationales for a LBO. 3. Knowing what is a reverse merger and the reasons for employing this listing method. 4. Knowing why some Chinese companies choose to list on the US stock markets.


Topics/Industry: M&Areverse IPO

Publication date: 27/03/2017

Published by: Case Centre

Authors: Marc Kitten

Length: 11 pages

Teaching notes: Available

Geography: USA

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