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GECAS – MAG ACQUISITIONFI6021: International Corporate Finance
MSc in International Management and Global Business
Group 4: Jennifer O’Sullivan, Charul Singh, Jieliang Fang & Selma Halilovic
November-2015
AGENDA
Brief overview of case study The rationale behind the acquisition Financial strategy Future challenges Concluding remarks
BRIEF OVERVIEW OF CASE STUDY
Milestone Aviation Group World’s largest helicopter lessor Headquartered in Dublin Founded in 2010 Acquired by GECAS in 2015 for $1.775 billion
THE RATIONALE BEHIND THE ACQUISITION: WHY MAG?
Strategic fit and synergy Adjacent industries
Strategic growth Portfolio expansion Alignment with GE’s core sectors
Risk minimisation Geographical location
Low corporation tax The Cape Town Convention
Retention of MAG management
FINANCIAL STRATEGY
Funding decisions Methods of payment
Valuation of MAG Assessing the right price
Impact on overall value of GETHE RATIONALE BEHIND THE ACQUISITION: WHY MAG?
FUTURE CHALLENGES
Facilitating successful integration Ensuring financial performance Potential risks
Legal issues Intellectual property risk Fluctuation of oil prices