Meter-Matic Limited

1) Explain and critically assess how Meter-matic measures up as a candidate for a leveraged buy-out? Include information about scotch references from the graphs shown in the text. What are the implications of the bond rate declining and the rand comely stronger against the US dollar? A MBO of Meter-matic Limited (Meter-matic) was considered by the CEO his focusing team for mainly strategic reasons. Meter-matic did non fit into SAFRENs strategic vision (according to Piet Malan and his management team) and was not seen as a core activity by its parent company -Meter-matic was too clarified to warrant much attention within the SAFRAN group. -Its products required a high level of technical skill and management was becoming increasingly indispens adapted to the operations (all of which SAFREN perceived as a weakness). The management team made up their conclusion by the fact that Meter-matic had received no attention at a strategic retreat and several of the SAFRAN board members clearly knew precise little about the division. Capital expenditure was rarely allocated to the division.

A concern is that due the lack of strategic fit Meter-matic was not able to take advantage of investment opportunities of which: -Industry lookout man for the foreseeable future in South Africa was good by the nature of the product, due to opportunities by governmental initiatives. It was apparent that potential drop existed to market the companys technology to other fluid-handling industries. -Meter-matics own designed products had received considerable interest from oversea suppliers and there was a strong possibility of exports in this area. SAFREN had meagre resources to actively market and support technology exports. Besides the strategic arguments the CEO, Piet Malan felt that he might be better able to retain his senior management team if they felt they possess a significant share of their company and raised excess capital for growth. His management team,... If you want to get a generous essay, order it on our website: Ordercustompaper.com

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