Marion Street Capital Identifies a Public-to-Private Leveraged Buyout (LBO) Opportunity Offering Large Private Equity Funds an IRR of up to 52% and a 7.5x MOIC

Marion Street Capital identified an out-of-favor public equity for a company (“PublicCo”) that was ripe for a Leveraged Buyout (“LBO”) opportunity prior to its next quarterly filing by researching all aspects of PublicCo including financials, company history, management, shareholders, competitive market analysis, and similar companies.

Person pointing at data

The Most Pressing Challenge

Marion Street Capital spent 6 months researching PublicCo, its competitors, and its industry to identify it as a viable investment opportunity. PublicCo’s stock was out-of-favor and the company was underleveraged to the point that investors could generate 32% - 52% IRR over 5 years and a 3.2x MOIC.

How Marion Street Capital Solved the Most Pressing Challenge

Marion Street Capital deployed its FinOps solutions to identify the potential returns for PublicCo by spending 250 hours researching multiple aspects of PublicCo, leveraged its extensive network to find partners for an LBO, and held strategic discussions with interested parties, including an executive at PublicCo.

MSC spent 6 months researching PublicCo, its competitors, and its industry to identify it as a viable investment opportunity by leveraging the following:

  • Discounted Cash Flow Analysis

  • Comps Multiples Approach

  • Leveraged Buyout Analysis

  • Sum of the Parts Analysis

  • Conversations with Chief Communications Officer at PublicCo

FinOps

Testimonial

“Marion Street Capital clearly ‘gets it.’ They initiated a dialogue with me around the time my public company’s stock was trading near multi-year lows. They asked me intelligent and differentiated questions about my firm’s corporate strategy, competitive position, customer value proposition, company financials, end market growth, and shareholder dynamics. The insights gained from these incisive conversations allowed us to rapidly increase the trading level of the stock by shifting from our outdated approach of concentrating strictly on growth rate to new methods that became true value drivers for the firm.”

- Chief Communications Officer, PublicCo