Finance 5823

Corporate Restructuring
Summer 2017

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The players in this case are actual
companies and investors depicted in a
purely fictional learning exercise for the
benefit of the students of the UTSA school
of business

There is no way something like this could

ever happen, right???

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Provides outsourced customer
contact management solutions
and services for businesses

The company offers its

outsourced customer contact
management services through
phone, e-mail, social media, text
messaging, chat, and digital
self-service support

Headquarters in Tampa, FL
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 Market capitalization of $1.4 billion
Annual revenue of $1.5 billion
Earnings per share of $1. 60
ROA of 5.49% and ROE of 9.24%
Forward P/E of 14.92

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 Sykes Enterprises has decided to look at
its strategic options
As a result of this, there are multiple
potentially interested players
One potential strategic buyer
One potential merger of equals partner
One potential financial buyer

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 Headquartered in Cincinnati, OH
Provides customer management services
to communications and media, technology,
financial services, retail, and healthcare
industries in North America and
internationally

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 Market capitalization of $2.28 billion
Annual revenue of $2.9 billion
Earnings per share of $1.35
ROA of 5.71% and ROE of 9.50%
Forward P/E of 12.41

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 Headquartered in Denver, CO

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 Market capitalization of $1.9 billion
Annual revenue of $1.3 billion
Earnings per share of $0.89
ROA of 7.18% and ROE of 11.00%
Forward P/E of 20.92

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 Headquartered in Washington, DC
Investment firm specializing in direct and
fund of fund investments
Direct investments include management-led
leveraged buyouts, privatizations, divestitures,
and many other types of ventures
Invests across four segments:
Corporate private equity
Real assets
Global market strategies
Investment solutions
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The Envelope Please!!
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Team Granular

Chudnow
Maxey
Miciano
Nath
Yuen

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Team Accretion

Ona
Reilly
Torres
Zamora

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Team Moving Parts

Ambriz
Bell
Chavez
Condra
James

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Team Synergy

Arriaga
Bonn
Hendricks
Romero

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From each teams own unique perspective,
develop the following:
A valuation for Sykes Enterprises
Use the concepts and information discussed in class and
presented in the text book
Include two different methods of valuation, one of which
should utilize a sophisticated discounted cash flow model
An evaluation of the various alternatives
available to Sykes Enterprises
A price range, structure and financing plan
under which the team would pursue a transaction
Discussion of why your offer is the best for all
shareholders involved
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 Collaboration and information sharing
between the teams is not allowed
Each team will have 25 minutes to present
its valuation and supporting logic
1. Sykes Enterprises
2. Convergys
3. TeleTech
4. The Carlyle Group
Group discussion to follow presentations

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 This particular project will be 50% of your group
assignment grade
Components of the grade:
Written plan document and supporting analytical data
(70%)
PowerPoint slides, in class presentation and discussion
(30%)
Key items to be evaluated:
Understanding of the companies business and strategies
Analytical work on valuation
Applications of concepts and information covered in class
discussions and textbook
Thoroughness of the finished product
Attention to detail
Logic, flow and creativity

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