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  • November 2012 (Revised January 2014)
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HCA, Inc. LBO Exit

By: Victoria Ivashina
  • Format:Print
  • | Language:English
  • | Pages:15
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Abstract

This case discusses the events following the 2006 $33.2 billion buyout of Hospital Corporation of America (HCA) by a consortium of private equity firms, including Bain Capital, KKR, and Merrill Lynch's private equity arm. The case highlights some of the core features of private equity investing. The first objective of the case is to allow students to understand a range of issues associated with the process of exit through an initial public offering. Understanding the economics of leveraged recapitalizations— including leveraged dividend payouts to financial sponsors and the opportunistic 2011 repurchase of Merrill Lynch's $1.5 billion stake—is the second objective of this case. The case protagonist is the management of HCA.

Keywords

Entrepreneurship; Finance; Stockholders; Dividends; Private Equity; Initial Public Offering

Citation

Ivashina, Victoria. "HCA, Inc. LBO Exit." Harvard Business School Case 813-056, November 2012. (Revised January 2014.)
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About The Author

Victoria Ivashina

Finance
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Related Work

    • December 2013 (Revised January 2014)
    • Faculty Research

    HCA, Inc. LBO Exit

    By: Victoria Ivashina
    • November 2012 (Revised January 2014)
    • Faculty Research

    HCA, Inc. LBO Exit

    By: Victoria Ivashina
Related Work
  • HCA, Inc. LBO Exit By: Victoria Ivashina
  • HCA, Inc. LBO Exit By: Victoria Ivashina
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