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Wharton 3/27/2013
Staying Power
In 20 years, what is most likely to be around?
Facebook? Google? Bankruptcy?
Despite the complexity, you are working with MORE perfect information in distressed
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While everyone is focused on exit multiples, spend time looking for opportunities and pitfalls of value creation
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Corporate Structure
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Bond Pricing
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Liabilities: ~$160M
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Conclusion
The more complicated the case, the more opportunities to uncover:
Hidden gems of value Hidden sources of value destruction / leakage
More importantly, the more complicated the case, the less likely analysts are looking at it, especially in smaller situations -> Alpha.
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