Espresso House
The financial attractiveness of branded coffee shops attracted investments from the private equity industry in 2005. The case analyzes how Palamon Capital Partners, a private equity firm, used quantitative analysis to assess the risk of a 5-year growth investment in Espresso House, a branded coffee shop chain in Sweden.
Collection: IESE (España)
Ref: AD-390-E
Number of pages: 14
Publication Date: Sep 18, 2023
Language: English
What material is included in this case:
Description
The financial attractiveness of branded coffee shops attracted investments from the private equity industry in 2005. The case analyzes how Palamon Capital Partners, a private equity firm, used quantitative analysis to assess the risk of a 5-year growth investment in Espresso House, a branded coffee shop chain in Sweden.
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Geographic Setting: Sweden
Industry Setting: Financial
Learning Objective
Although the discussion in class can touch briefly upon the basic elements of the private equity industry, the key part would be to use the information provided in the case to assess whether the deal was worthwhile, or whether it was too risky. Participants should be able to provide their investors with 90 percent confidence intervals for the relevant variables (enterprise value, exit ratio, etc.)
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