Management Buy-Out Of Merkur

Authors: Slapnicar, S.; Garrod, N.
Source: ECCH
Year: 2009
Company Name: Merkur
Number of pages: 14

[This document has not yet been rated] [You must be signed in as faculty to rate this document]   982 views

Abstract:

In this case, issues of agency, corporate governance and accounting incentives are raised arising from buyouts of companies by their incumbent management. The buyout described in this case took place in Slovenia - a full member of the European Union - under a regulatory and reporting environment wholly compliant with international accounting standards. This case is based on the details of how a small group of managers purchased the firm which they ran, now valued at several hundred million euros, for a personal investment of only a few thousand euros. It is suitable to be used as a basis for exploring: (1) issues of agency and incentives; (2) pre- and post-acquisition accounting choices; (3) corporate governance; (4) valuation; (5) growth issues; and (6) ethics.