Elephant Bar Restaurant: Mezzanine Financing Harvard Case Solution & Analysis

In November 2003, John Fruehwirth, the main thing in Allied Capital, considers the $ 20 million investment in mezzanine capital growth for Elephant Bar, California restaurant chain. Elephant Bar has had some initial success in California, but now the investment committee of the Union had to struggle with the question of the restaurant concept was strong enough to travel, and to become a national brand, or was it mostly "California Concept". And if the concept was strong enough to travel, Allied Capital will be able to meet their underwriting standards? Because the Elephant Bar is a company with aggressive growth plans, it is much more risky than traditional investments mezzanine. The case can be used in courses on venture capital to illustrate another source of funding available to young companies. Traditional mezzanine financing are often used to provide part of the funding in the later stages of investment, such as by borrowing. The case can also be used in courses on private equity, to illustrate perspective, strategies to reduce risk and expected return of the investor mezzanine. This case teaching notes and worksheets that are available for registered users faculty. "Hide
by Susan Chaplinsky, Christina Anderson Source: Darden School of Business 29 pages. Publication Date: September 20, 2008. Prod. #: UV1191-PDF-ENG

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Elephant Bar Restaurant: Mezzanine Financing

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