How did Ed Woodward ended up at Manchester United?
In 2005, the Glazers took control of Man Utd through a ~£790m Leveraged Buyout (LBO).
Due to the complexity of the LBO, Woodward who worked as an M&A specialist at J.P. Morgan was assigned by the bank to assist in the deal.
In 2005, the Glazers took control of Man Utd through a ~£790m Leveraged Buyout (LBO).
Due to the complexity of the LBO, Woodward who worked as an M&A specialist at J.P. Morgan was assigned by the bank to assist in the deal.
Leveraged Buyouts (LBOs) are transaction where a company is acquired using debt as the main source of consideration.
The debt is usually secured against the assets and cashflows of the acquired company.
Manchester United was debt-free before the Glazers bought it.
The debt is usually secured against the assets and cashflows of the acquired company.
Manchester United was debt-free before the Glazers bought it.
The battle for the control of RJR Nabisco showed that companies that are mature, stable, predictable are good candidates for a LBOs.
Due to the amount of debt that will be loaded onto the acquired, predictable cash flows are important to make the debt repayments.
Due to the amount of debt that will be loaded onto the acquired, predictable cash flows are important to make the debt repayments.
Manchester United was then loaded with debt and has being swimming in a deep pool of debt.
Since the LBO, Manchester United has spent +-£1,073bn on financing the debt, broken down as;
~£704m interest,
~£244m debt repayments and
~£125m dividends to the Glazers.
Since the LBO, Manchester United has spent +-£1,073bn on financing the debt, broken down as;
~£704m interest,
~£244m debt repayments and
~£125m dividends to the Glazers.
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