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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

CONCLUDING REMARKS

In such uncertain times for GE Capital why do you think that GE approved the acquisition of

MAG by GECAS?