An investment proposal for atoss software Ag - focus area: capital structure

Abstract

This paper analyses a leveraged buyout of ATOSS Software AG, a leading German workforce management software provider, from a strategic and financial perspective. It is concluded that ATOSS Software AG is an attractive LBO candidate, allowing a financial sponsor to create value by internationalizing a highly profitable and cash-generative business through a buy-and-build strategy. This part of the analysis focuses on choosing a capital structure for the suggested EUR 750m LBO in a challenging market environment. It is recommended that the LBO should be financed with a senior-subordinated structure at an initial net leverage of below 5.5x.