How should a private equity firm assess the investment potential for an Argentinian discount supermarket chain?
How should a private equity firm assess the investment potential for an Argentinian discount supermarket chain?
In the mid-1990s a private equity firm considered the challenges and growth opportunities for a discount supermarket chain in Argentina. In the A case, students are presented with industry and company background and financials related to the investment opportunity, and asked to consider the merits of the company's valuation and whether a retail start-up in an emerging market could achieve success in a short time horizon. The B case discusses the economic and political turmoil in Argentina in 2001-2002 and its impact on the company.