上海对外贸易学院 2012 — 2013 学年第二学期 " Case Studies in Financial Management” Final Exam (Paper A) 选课序号： 612. 043. 301(2) 任课教师： 唐旭君 姓 名： 学 号： 考试形式： □闭卷 ■开卷 双语教学： ■是 □否 修读方式： ■必修 □选修 □辅修 试卷页数 共 18 页 考试时间： 年级专业： 需计算器： 机考座位： 150 ■是 分钟 □否 号机
PRADA: TO GOING PUBLIC OR NOT TO IPO: FIND OUT TODAY, AGAIN
It had been January 25, 2011 and Guido Santini of the purchase bank Colectividad Capo Milano had just been asked to prepare a recommendation about how Prada should raise the funds for its organized expansion in Asia and to pay the significant portion of their long-term debts that was maturing inside one year. Although he had well-known this ask for would be coming at some point, he had expected a lot more time. His recommendation needed to be presented towards the Prada Table of Directors at their very own annual general meeting timetabled in two days, on January 27. THE MISSION The board expected that Santini prepare a record recommending and ranking alternatives for raising over you billion euros within the next 6 to twelve months. With more than €1 billion of debt maturing within a year (almost fifty percent in the next 6 months), Prada needed to possess a credible plan in place to satisfy these responsibilities. In addition to the capital to refinance its existing debt, Prada had determined Asia while an area pertaining to future growth, and this growth also essential capital. Asia was currently experiencing considerably higher growth than other parts of the world, and Prada wanted to be able to indulge in and reap the benefits of this. Subsequently, Santini's work was to advise to the plank how Prada could ideal secure the essential capital to pay the maturing loans and start their expansion inside the Asian markets immediately. An important account for the board was your significant pressure coming from outside the firm. The media made sure that Prada's key stakeholders were aware of you can actually current financial situation, and these types of stakeholders had been, as a consequence, beginning to apply pressure on Prada to make regarded its intentions with respect to it is strategic and financial goals at the future annual standard meeting. Prada's financial requirements were recognized because of the many high profile discounts that their parent organization had taken on over the past ten years in its quest to become one of the pre-eminent high-class brands in the world. Despite many successes, this series of acquisitions was not as successful as Prada might have liked. Actually they left the company with significant financial obligations, which were all coming credited at roughly the same time. One of the major alternatives becoming discussed by the media is that Prada was considering a basic public providing (IPO). This did not include a new substitute for the business. Over the past 10 years, Prada got tried to get public in several events, but the IPOs were terminated each time as a result of last-minute unfavourable 1
within market circumstances. Given the continuing global financial crisis, it absolutely was not clear that current market circumstances were any more favourable, specially in Europe wherever concerns persisted with respect to debts levels in many countries. Consequently, Santini knew it turned out even more important to get Prada to have a series of alternatives for the board to consider at this point. Before deciding which alternatives to recommend and how to ranking them, Santini had his team build detailed information concerning the fashion industry and Prada's current financial and strategic position. FASHION MARKET The fashion industry consisted of five sectors: haute fashion, luxury, affordable luxury, popular and discount. Haute premium was the most high-priced and bar the sectors. Companies with this segment produced custom-made clothes from expensive materials to get a very unique group and included Christian Dior, Chanel, Givenchy, etc . Though the luxury segment was a step down in terms of quality and price, it continue to used good quality materials and prices were substantial. Some of the best well-known companies from this segment were Dolce & Gabbana, Prada,...