Intended to improve students’ understanding and promote the use of financial statement analysis. The context is Dollar General Corporation takeover by private equity sponsor KKR took the company private in 2007. Although the proposed merger creates a 30% premium over the share price at the time and the enterprise value to EBITDA multiple was significantly higher than comparable transaction multiples in the retail sector, some claimed shareholders that the price is “grossly … Continue reading»

Intended to improve students’ understanding and promote the use of financial statement analysis. The context is Dollar General Corporation takeover by private equity sponsor KKR took the company private in 2007. Although the proposed merger creates a 30% premium over the share price at the time and the enterprise value to EBITDA multiple was significantly higher than comparable transaction multiples in the retail sector, some claimed shareholders that the price was “grossly inadequate”, so that the decision whether to approve the transaction in principle a difficult year for the shareholders.
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Sharon Katz
Source: Harvard Business School
28 pages.
Publication Date: Aug 12, 2007. Prod #: 108015-PDF-ENG
Dollar General Going Private HBR case solution