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Case
| HBS Case Collection
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2013
Investindustrial Exits Ducati
by
Francois Brochet and Karol Misztal
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Abstract
In early 2012, Investindustrial, a European private equity group, publicly announced their intention to sell their 76.7% stake in Ducati Motor Holding S.p.A., an iconic Italian producer of sport performance motorcycles. The decision followed a six-year turnaround during which Ducati returned to profitability and significantly expanded its product line. Investindustrial's team had the following exit alternatives: 1) a trade sale to an automotive buyer; 2) a secondary buyout, partial or complete, by a financial investor; 3) a relisting in Hong Kong. Each option had its pros and cons, but all required a careful valuation of Ducati to maximize the investors' return on their flagship investment.
Keywords: Cost vs Benefits;
Private Equity;
Valuation;
Investment Return;
Brands and Branding;
Financial Services Industry;
Motorcycle Industry;
Hong Kong;
Italy;