BCE Inc.: World’s Largest LBO Deal in Jeopardy Harvard Case Solution & Analysis

In November, 2008, BCI Inc. (BCE) seemed on track to fulfill a December 2008 due date to finish a $52-billion privatization deal. A consortium had actually formerly sent a winning leveraged buyout (LBO) quote that was approximated to include an approximated $32 billion in financial obligation to the business. Simple days prior to the deal's "termination date," BCE executives were shocked to hear that KPMG auditors encouraged the deal remained in jeopardy of collapse - based upon a stipulation that usually warranted little interest.

The auditors kept in mind that, on the basis of initial evaluation, the business had actually not passed a needed "solvency test" which compared the approximated value of BCE's possessions and liabilities on the occasion that BCE had to liquidate. BCE executives had little time to identify if the deal could still be conserved and if so, how? Alternatively, if the deal could not be finished, exactly what would the company's next actions be?

PUBLICATION DATE: January 29, 2010 PRODUCT #: 909N29-PDF-ENG

This is just an excerpt. This case is about FINANCE & ACCOUNTING

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