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Sealed Air Corporation : Leveraged Recapitulation

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Sealed Air Corporation’s Leveraged Recapitalization Final Paper Sealed Air Corporation: Leveraged Recapitulation 06/22/2015 Marilyn Grant: FHTMS 102577 Neomar Schenker: FHTMS Airtaiza Fraser: FHTMS MASTER’S PROGRAMME OF BUSINESS ADMINISTRATION University of Aruba Faculty of Hospitality, Tourism Management & International Business Studies Corporate Finance Prof. Donald Taylor TABLE OF CONTENTS Introduction 4 The competitive position and culture of the firm 5 Surviving changing market competition 7 Financial Ratio’s Analysis 8 Liquidity Measurement Ratios 9 Profitability Indicator Ratios 10 Debt Ratio Analysis 10 Value Created by Leveraged Recapitalization 14 Figure 7 20 Applying the Concepts of theories of Value 23 Reasons for Undertaking Leveraged Recapitalization 23 Evaluation & Monitors 24 Negative Net Worth 24 References & Appendix 27 Sealed Air Corporation’s Leveraged Recapitalization Introduction A special dividend was paid to the shareholders of the company when Sealed Air Corporation borrowed the total common stock for a value of 90% of its market value. This was a program which was basically initiated by the management of the company for improving the product quality and improving the efficiency of the manufacturing processes of the company. The leveraged recapitalization was used as a watershed event and this was done successfully and purposefully by the management of the company. Many internal changes occurred as a result

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