KKR Buyout of Dollar General

KKR Dollar General Project Rubric

Your average grade on this project, the retirement project, and the capital budgeting project will comprise 15% of your course grade.

1. (25 points) Why did KKR find Dollar General an attractive target?
   Compare Dollar General to the “What Makes a Good LBO Candidate” section of the LBO Primer on t-square (resources, class notes, topics, 11a)

1. (10 points) What is KKR’s investment strategy?

1. (10 points) How do you think that KKR adds value to Dollar General?

1. (10 points) What do you think are the major risks to KKR of this investment?

1. (40 points) Do you think that KKR’s offer is a good deal for KKR?
   The answer to this question includes DCF analysis (don’t forget terminal value), comparable firm analysis, and your “football field.”

1. (5 points) Summarize your recommendation to KKR.

1. Bonus points: Outline a viable exit strategy for KKR.