1. What potential challenges and uncertainties did Masonite face regarding the economy and the building products industry at the time that KKR was considering an LBO?

2. What is meant by LBO? What is the proposed capital structure? What is meant by the terms Mezzanine Debt, Junk Bonds, etc?

3. Is Masonite a good candidate for LBO?

4. What is the value of Masonite? (Review the Modigliani-Miller theory from your Finance text-book. We'll briefly review this theory in class.)

5. Why did some investors complain about the LBO proposal from KKR?

Answer rating: 100% (QA)

1At the time that KKR was considering an LBO of Masonite the economy was experiencing a recession and the building products industry was facing challe... View the full answer