Unpacking the effects of an Ipo on the parent company valuation and capital structure: a Leonardo spa analysis

Abstract

This case study delves into the captivating journey of Leonardo DRS, a prominent U.S. defence and technology company, as it navigates the complexities of an unsuccessful initial public offering (IPO) attempt. By examining the pivotal factors that led to the IPO withdrawal, this study sheds light on the range of viable growth strategies available to Leonardo DRS post IPO. While considering the spectrum of available growth avenues, this case study places a special emphasis on a comprehensive analysis of RADA Electronic Industries, a potential target company. Through a meticulous evaluation of various growth opportunities, Leonardo DRS's management faces the challenging task of determining the most suitable path to achieve the company's ambitious goals for future expansion and diversification. This case study provides insights into the intricate world of corporate growth strategies and the strategic decision- making process, allowing readers to engage with the challenges faced by industry leaders while contemplating the potential outcomes and implications of their choices.