Orhan Sertdemirel Ducati Case Study

Topics: Investment, Motorcycle, Economics Pages: 10 (318 words) Published: May 27, 2015
Ducati Case Study

Investindustrial Exits Ducati

 At the begining of 2012, Investindustrial
openly introduced their intention to market
their 76.7% stake in Ducati Motor Holding,
an legendary Italian producer of sport
performance motorcycles.
 The choice adopted a six-year turnaround
throughout which Ducati came back to
profitability and considerably broadened its
products.

Options

Investindustrial's team had the next exit options
 IPO in Hong Kong
 Trade sale to an industry participant from the
motorcycle or automative sector
 Trade sale to another financial investor

IPO in Hong Kong

Pros
 Increase in share price
 Takes 6-9 months to execute
an IPO
 Ducati’s flotation is succesfull
 HKEX became the biggest IPO
market by value in 2009-2010
 Access to chinese investors, it
may increases liquidity
 Succesfull commercial in Asian
Makerke

Cons

 Contraction due to
European sovereign debt
crisis.
 Several companies lost
their momentum in 2007

Trade Sale to an Industry
Participant

Pros
 Access to capital for
future growth
 Geographical advantage
 Create technological and
cost synergies
 Offering highest price for
Ducati instead of brand
value

Cons

 Potential acquirers may
interested in a controlling
state to have operational
control and access to
cash flows

Potential Trade Buyers
 Volkswagen
 BMW Group
 Daimler
 Harley-Davidson
 Other Western motorcyle companies

Trade Sale to Another Financial Investor

Pros

 Strong financial
supporting such as Aabar
Investments.
 Raising capital

Cons
 Second round of a
financial partner is a
risky, may cause
overleveraged
 Ducati’s unique culture
more important than
revenues.

Assesment of Ducati’s
Performance(2006-2011)
According to;
 Economic results
 Economic ratios
 Financial results

Firm’s Valuation
 Ducati brand has a an intangible asset with indefinite
uselful life.
 Existed on the market succesfully more than 80
years with strong brand loyalty.
 Product ranges and technologies which uses from
Ducati, niche with market leadership
 Ability to tackle internally the constant changes in
demand and market conditions.
 Ducati brand supported by advertisements and
investments.

References

http://
www.hbs.edu/faculty/Pages/item.aspx?num=4
4181



References: http://
www.hbs.edu/faculty/Pages/item.aspx?num=4
4181
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