NORTH VILLAGE CAPITAL PRIVATE EQUITY
SUGGESTED ASSIGNMENT QUESTIONS
1. Why does AlarmServe appear to be a good target acquisition candidate?
2. What criteria should Lee take into account when designing the capital structure?
3. Based on the financial projections and model provided in the case, evaluate the three
alternative capital structures that were proposed.
4. Assuming sales decline by the suggested six per cent in 2010, which, if any, of the
proposed alternatives would break the loan covenants?
5. Which structure should Lee propose?