Question Description
I’m working on a case studies case study and need an explanation and answer to help me learn.
Question: After years of moderate to slow growth, the privately-held plastics manufacturer, Norcorp Inc.,has been acquired by a mid-tier private equity firm. The private equity firm wishes to optimize all aspects of Norcorp’s operations and finances (especially the latter) so that Norcorp may be sold to a strategic acquirer in 2-3 years.Your finance consultancy firm has been retained to assist in the process of optimizing Norcorp Finances, starting with raising additional capital for expanded operations and, possibly, acquiring additional capabilities.Based on your reading of Chapters 4 & 5, prepare an ExecutiveSummary discussing the various parts, cons, and tradeoffs of both equity financing, debt financing, and whether some mix of the two would be appropriate for Norcorp’s financing needs. You should pay particular attention to issues of control, risk (financial, operational, mission, etc.), and sustainability. This should be done from the perspective of (primarily), Norcorp itself but, also, from the perspective of the investors in Norcorp’s pending financing issue
Answer the following with the provided chapters 4-5, and the question above.
1. Question at hand:
2 . Information given:
3 . Assumptions:
4 . Concepts: