In this case, Sharon Louis is tasked with analyzing a potential Bain Capital buyout of Dollarama, a Canadian chain of dollar stores. Louis’s bank is offering $600 million in deal financing to Bain Capital Private Equity (Bain), the acquirer, and Dollarama’s enterprise value is estimated to fall between $900 million and $1.2 billion. Her role is to estimate both a purchase price of Dollarama.
In a 15 slide elegant Power Point, present the following:
What is Bain Capital (go to their website)?
What is Dollarama?
Using the case, assess Dollarama’s attractiveness as a leveraged buyout?
Carefully lay out Bain’s strategy from entry to exit?
Case Exhibit 6 provides a list of U.S. value retailers, U.S. discount retailers, and Canadian retailers. How would you determine a potential transaction price? Use the spreadsheet simulation to assess it.