Seven private investment firms acquired 100% of the outstanding stock of SunGard Data Systems Inc. (SunGard). SunGard is a financial-software firm known for providing application and transaction software services and creating backup data systems in the event of disaster. The company’s software manages 70% of the transactions made on the NASDAQ stock exchange, but its biggest business is creating backup data systems in case a client’s main systems are disabled by a natural disaster, blackout, or terrorist attack.

 

Its large client base for disaster recovery and backup systems provides a substantial and predictable cash flow. Furthermore, the firm had substantial amounts of largely unencumbered current assets. The deal left SunGard with a nearly 5-to-1 debt-to-equity ratio. Why do you believe lenders might have been willing to finance such a highly leveraged transaction?

Found something interesting ?

• On-time delivery guarantee
• PhD-level professional writers
• Free Plagiarism Report

• 100% money-back guarantee
• Absolute Privacy & Confidentiality
• High Quality custom-written papers

Related Model Questions

Feel free to peruse our college and university model questions. If any our our assignment tasks interests you, click to place your order. Every paper is written by our professional essay writers from scratch to avoid plagiarism. We guarantee highest quality of work besides delivering your paper on time.

Grab your Discount!

25% Coupon Code: SAVE25
get 25% !!