Growth and Transition at Onex Corporation

內容大綱
Over its 30-year history, Onex Corporation, a Canadian investment firm, had derived much of its success from the private equity sector. It did so by acquiring attractive portfolio companies, adding value to them by improving their financial and operational performance, and then selling them several years later at an attractive return. However, given the market conditions in 2015, Onex Corporation faced difficulty in successfully acquiring target companies, which was further exacerbated by the large amounts of cash on its balance sheet. As a result, the firm was forced to actively seek growth in other sectors, primarily credit-oriented investment strategies. Given Onex Corporation’s growth targets, the chief executive officer and his management team needed to reconsider the lines of business their company should be involved in. How could they effectively position the company’s corporate structure, internal processes, and expertise to take advantage of credit-oriented investment strategies?
學習目標
This case is intended for courses that discuss private equity. It is ideal for use in a corporate strategy course to illustrate the issues related to horizontal product-market diversification. After completion of this case, students should be able to: <br><ul><li>Examine how changes in an external environment may require a firm to alter its scope and organization in an attempt to remain competitive and continue growing.<br></li><li>Analyze the private equity sector and a successful player in it, discussing the aspects of this firm’s strategy, internal structure, and processes that led to past success, and how these traits can be leveraged in the future. <br></li><li>Examine the parallels between credit-oriented investing strategies and private equity investing strategies, and demonstrate how similarities across both can be best leveraged.
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