Private equity challenge - market overview and sprouts farmers market´s investment thesis

This investment committee paper consists of a proposal for a leveraged buy out of Sprouts Farmers Market, a US-based supermarket chain, leader in the organic segment. The group has developed a value creation strategy based on the expansion of store network and margins, through the exploration of eff...

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Bibliographic Details
Main Author: Santos, Mariana Lima (author)
Format: masterThesis
Language:eng
Published: 2022
Subjects:
Private equity challenge
Supermarkets
Leveraged buyout
Grocery retail
Investment thesis
Market overview
Domínio/Área Científica::Ciências Sociais::Economia e Gestão
Online Access:http://hdl.handle.net/10362/142022
Country:Portugal
Oai:oai:run.unl.pt:10362/142022
Description
Summary:This investment committee paper consists of a proposal for a leveraged buy out of Sprouts Farmers Market, a US-based supermarket chain, leader in the organic segment. The group has developed a value creation strategy based on the expansion of store network and margins, through the exploration of efficiencies and a private label program. Under the proposed strategy and following a capital structure with 64,5% Entry Debt/EV, the deal will result in an IRR of 21,7% and a money multiple of 2.7x, over a 5-year investment period.

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