Hannah Andreotti: Making the numbers work - Teaching note

Hannah Andreotti, a former JP Morgan employee, who is seeking to complete a management buy-in of EcoVolt Automotive (EVA), a specialized automotive parts producer focused on luxury electric cars. After being made redundant, Hannah is using her savings and experience to acquire a 32% equity stake in EVA with the goal of achieving a 30% IRR for her investors. The case digs into the challenges she faces in structuring the deal to meet investor demands while maintaining her desired stake. Key financial figures, tax rates, and the company's future forecasts are presented, including the use of senior debt and other instruments for financing. Additionally, it details the family inheritance issues that have led to the sale of the company and outlines how Hannah's buyout model must satisfy both the investors and the current owners. This case provides insight into deal structuring, financial forecasting, and business negotiations.