Diss. Linköping : Linköpings universitet, 2007.

<p>The number of LBOs in Sweden has increased during the last years and the current market trend is positive. MostLBOs involves private companies, but a few concerns public corporations on the national share market. In this thesis we will examine the conditions of a LBO of Cloetta Fazer AB. The purpose is to study existing conditions of Cloetta Fazer AB and to examine pros and cons with the deal. Based upon information presented in the frame of reference and in the empirical part, two cash flow valuations have been carried out. The first valuation is a regular discounted cash flow valuation while the other is a specific LBO valuation. In a LBO valuation the debt terms and the changed capital structure is taken into consideration. The valuations are followed by an analysis where LBO conditions as well as pros and cons are examined.</p><p>Positive conditions for Cloetta Fazer AB are insensitiveness of market fluctuations, a strong market position, stable cash flows, low risk and strong product trademarks. There is also a possibility of increasing the expected rate of return with more leverage since the current financial structure can take on more debt. We argue that a LBO of a public corporation is surrounded by limited information due to legal restrictions such as insider rules. Limited information makes it difficult to motivate value creation. Other factors that obstruct a LBO of Cloetta Fazer AB is increased market competition, indistinct possibility of rationalising the business and a high EV/EBITDA multiple. We have also found that the IRR value is too low. Due to the fact that a LBO requires a premium of at least 20 % over market value, it is difficult to argue for a LBO of Cloetta Fazer AB.</p>

Background: Mergers have been increasing during the latter part of the 1990s. In the Nordic region many previously national companies have joined their forces to create a new Nordic company. This will lead to many challenges when the companies are integrated. Purpose: The purpose of this thesis is to investigate the integration phase. Our goal is to study the integration of Cloetta Fazer and learn how the company can handle the two types of integration. Procedure: To be able to prove our assumptions, that were made on the basis of literature, we have collected empirical material by interviewing eight managers at Cloetta Fazer. Summary: We have identified a conflict between structural and cultural integration that occur because one type of integration may proceed faster than the other. That is why our statement is that the two types of integration are dependent on each other. / Bakgrund: Fusioner har ökat under senare delen av 1990-talet. I Norden har många tidigare nationella företag gått samman för att bilda ett nytt nordiskt företag. Detta leder till utmaningar när företagen skall integreras. Syfte: Syftet med denna uppsats är att undersöka integrationsprocessen. Vårt mål är att studera integrationen av Cloetta Fazer och lära hur ett företag kan hantera de två olika typerna av integration. Genomförande: För att kunna bevisa våra frågeställningar, som gjordes på basen av litteratur, har vi samlat in empiriskt material genom att intervjua åtta stycken chefer på Cloetta Fazer. Sammandrag: Vi har identifierat en konflikt mellan strukturell och kulturell integration som beror på att den ena typen fortgår snabbare än den andra. Därmed är vår slutsats att dessa två typer av integration är beroende av varandra.

The number of LBOs in Sweden has increased during the last years and the current market trend is positive. MostLBOs involves private companies, but a few concerns public corporations on the national share market. In this thesis we will examine the conditions of a LBO of Cloetta Fazer AB. The purpose is to study existing conditions of Cloetta Fazer AB and to examine pros and cons with the deal. Based upon information presented in the frame of reference and in the empirical part, two cash flow valuations have been carried out. The first valuation is a regular discounted cash flow valuation while the other is a specific LBO valuation. In a LBO valuation the debt terms and the changed capital structure is taken into consideration. The valuations are followed by an analysis where LBO conditions as well as pros and cons are examined. Positive conditions for Cloetta Fazer AB are insensitiveness of market fluctuations, a strong market position, stable cash flows, low risk and strong product trademarks. There is also a possibility of increasing the expected rate of return with more leverage since the current financial structure can take on more debt. We argue that a LBO of a public corporation is surrounded by limited information due to legal restrictions such as insider rules. Limited information makes it difficult to motivate value creation. Other factors that obstruct a LBO of Cloetta Fazer AB is increased market competition, indistinct possibility of rationalising the business and a high EV/EBITDA multiple. We have also found that the IRR value is too low. Due to the fact that a LBO requires a premium of at least 20 % over market value, it is difficult to argue for a LBO of Cloetta Fazer AB.

<p>Background: Mergers have been increasing during the latter part of the 1990s. In the Nordic region many previously national companies have joined their forces to create a new Nordic company. This will lead to many challenges when the companies are integrated.</p><p>Purpose: The purpose of this thesis is to investigate the integration phase. Our goal is to study the integration of Cloetta Fazer and learn how the company can handle the two types of integration. </p><p>Procedure: To be able to prove our assumptions, that were made on the basis of literature, we have collected empirical material by interviewing eight managers at Cloetta Fazer. </p><p>Summary: We have identified a conflict between structural and cultural integration that occur because one type of integration may proceed faster than the other. That is why our statement is that the two types of integration are dependent on each other.</p> / <p>Bakgrund: Fusioner har ökat under senare delen av 1990-talet. I Norden har många tidigare nationella företag gått samman för att bilda ett nytt nordiskt företag. Detta leder till utmaningar när företagen skall integreras. </p><p>Syfte: Syftet med denna uppsats är att undersöka integrationsprocessen. Vårt mål är att studera integrationen av Cloetta Fazer och lära hur ett företag kan hantera de två olika typerna av integration. </p><p>Genomförande: För att kunna bevisa våra frågeställningar, som gjordes på basen av litteratur, har vi samlat in empiriskt material genom att intervjua åtta stycken chefer på Cloetta Fazer. </p><p>Sammandrag: Vi har identifierat en konflikt mellan strukturell och kulturell integration som beror på att den ena typen fortgår snabbare än den andra. Därmed är vår slutsats att dessa två typer av integration är beroende av varandra.</p>