Professor Elam

Tuesday July 2 2013

Storied Steinway Musical Instruments is going private in a $35 a share bid by private equity Steinway. 

Here i s graph of LVB dating aback to pre crash levels of 2008. Note this is the highest price it has 

traded at since then. Typically a buy out requires higher than existing price by the buyer. Key Statistics for LVB are here.

Questions for class discussion

1. Why is Kohlberg buying now?  For perspective in forming your answer, here is a 14 year chart of LVB.

2. What do you see among the statistics that would attract your buying interest?

3. Are there other qualitative reasons to buy LVB?  What is the difference between a quantitative and a qualitative reason? Should that influence the buyer?

We are studying Equity in ACCT 3310 and Analysis in ACCT 3314, that makes this a great instructional moment and another reason you should be reading financial blogs and the Wall Street Journal.