M-F-PEQ-21-A21 Private Equity - Cranfield University

Questions on the "Bain Capital's Take Private of China Fire" case:

Question 1. Briefly describe China Fire's business and its main characteristics?

Question 2. How and why did China Fire become public (listed) in the U.S.?

Question 3. What characteristics make a company a good buyout target?What kind of risks are involvedin buyouts?

Question 4. Is China Fire a suitable buyout target? What are its management and Bain Capitals' motives for a buyout?

Question 5. What are different conflicts of interest in a typical Management Buyout (MBO) transaction? Do you see any conflict of interest in China Fire case?

Question 6. What is a Special Committee? What is fairness opinion? Who provides it and why?

Question 7. Which valuation method do you think is more appropriate to value China Fire and why?

Question 8. Estimate the value of China Fire using Price-Earnings (P/E) multiple.Please provide any calculations in an appendix.

Attachment:- Private Equity.rar