This case is reserved for use by Columbia Business School Faculty only.
As an investment bank prepares to advise a client on a competing bid for a child-care services company, how should the target and potential buyer be valued?
As an investment bank prepares to advise a client on a competing bid for a child-care services company, how should the target and potential buyer be valued?
Jacqueline Barbieri, the managing principal of boutique investment bank B&H Advisors, wanted to assist her client Living, Loving & Learning on a competing bid for Bright Horizons Family Solutions, which had agreed to be bought by an affiliate of Bain Capital. Although both LL&L and Bright Horizons provided child-care services, the former was closely held and few trading comparables existed for Bright Horizons. Creating a stock-for-stock merger proposal depended on analyzing the valuations for LL&L and Bright Horizons and incorporating the impact of a $19.5 million termination fee. In this case students examine financial data such as projected income statements to create valuations for both businesses and examine the options for a takeover bid.
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