Russia M&A activity, OJSC Transaero Airlines case study

The 26th of October 2015, OJSC Transaero Airlines, a Russian airline company, ceased its operations after 24 years. As of 03 September 2015, the Board of Directors of Aeroflot-Russian Airlines PJSC, the Russia’s flagship carrier, developed and approved a proposal for restructuring Transaero and to transfer the operational management to Aeroflot, ensuring corporate control over…

Behind the largest Technology acquisition, EMC case study

The private equity firm Silver Lake Partners, Michael Dell and the strategic partner Microsoft Corporation, on the 5th of February 2013, carried out one of the largest leverage buyout transaction since the financial crisis of 2008, worth $24bn, a risky bet for stopping the decline in the business of laptops and desktops and focusing on…

LinkedIn is ready to follow Yelp and Twitter

Our recommendation for LinkedIn (NYSE: LNKD) is UNDERPERFORM with a target price of $182. Although the company recently reported a better-than-expected Q2’15, the bigger-than-expected contribution of Lynda.com could be hiding some issues related to the company’s core business. LinkedIn is ready to follow Yelp and Twitter By Gabriel Zapata; Yuedan Lu; Marco Riveri; Qian Huang;…

The Predominance of Premiums

As counter-intuitive as it may seem, the luxury industry and iconic companies such as LVMH, Hermes and the Richemont group recorded strong performance during the 2007-08 financial crisis. To simplify their activities – and perhaps strip them out of their hard earned experience, know-how, glamorous appeal and subsequent prestige- these groups sell goods at a…

The importance of working Capital in your investment decision

One of the best way to assess if the company in which you are investing is on the way of profitability, is to calculate its Working Capital. Generally, Long-term investments and financing decisions determine the future cash flows of a firm. When we discount these cash flows by an appropriate cost of capital, we can…

Weekly Review [April,20-April,24]

Monday, April 20 German producer’s prices below expectations in March: 0.1%. Improves Spanish trade balance in March: -2.04 billion. Chinese company Kaisa ago defaulted on its debt denominated in US dollars. Tuesday, April 21 German ZEW economic index above expectations in April: 70.2. Tianwei is the first Chinese public company to default on bonds denominated…