Hi professor. I have a problem with case study (P531-551). Here are the questions. Kmart, Sears and ESL: How a
Hedge Fund Became one of the World’s Largest Retailers 1. Describe recent trends in the hedge fund and private equity industry and the growing overlap between the two. 2. Analyze different issues surrounding a purchase by a financial or strategic buyer and their respective strengths and weaknesses. 3. Provide a brief historical background of the problems facing Kmart and the characteristics of the distressed debt market, including factors that influence an investment in a distressed company. 4. Compare Kmart’s financials before and after bankruptcy (see Case Exhibit 6). 5. Discuss the causal events facilitating the acquisition of Sears. Could Sears have succeeded as a standalone retailer? 6. Evaluate Lampert’s strategy and the benefits for Sears’s shareholders.