Actis: Private equity investments in a capricious market
Publication Type
Case
Publication Date
3-2014
Abstract
This case looks at the front end of a private equity (PE) deal cycle. It is set in September 2008, and begins with the Investment Principal of Actis (China), a global private equity firm, preparing to present the proposal for 7 Days Inn, the fourth largest budget hotel chain in China, to the Investment Committee (IC). Just a day before the IC meeting, he hears news about the Lehman bankruptcy.
How would the news about the collapse of Lehman Brothers impact the 7 Days deal? Would it change the industry and company forecasts, which he and his team had meticulously calculated? Would Li be able to convince the IC that 7 Days Inn was still a good investment? Most importantly, should Actis go ahead with the proposal or should they re-consider?
Keyword(s)
Private equity, investment, finance, budget hotels, hotel industry, China, Asia
Discipline
Business Administration, Management, and Operations | Finance and Financial Management | Strategic Management Policy
Data Source
Field Research
Industry
Financial Services
Geographic Coverage
China
Temporal Coverage
2006-2008
Education Level
Executive Education; Postgraduate; Undergraduate
Publisher
Singapore Management University
Case ID
SMU-13-0043
Additional URL
https://cmp.smu.edu.sg/case/1761
Comments
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