Resumo

In 2008, Linx was a BRL 20 million annual sales company in the retail management software segment. By that time, Linx’s executives realized that important competitors, Totvs and Bematech , were growing in its segment and Linx must grow too. Thus, acquiring Quadrant would be their chance to grow. To fund acquisition until 2015, they faced a dilemma: seeking for new loans, new shareholders, or preparing for an IPO? Funding strategies would change not only Linx’s capital structure but also its cash availability. Integration with acquired companies was also a challenge.

Learning goals: (i) Debate odds and evens of acquiring a similar size competitor; (ii) Understand the company’s strategy and sources of funding; (iii) Comprehend the step by step of an IPO; and (iv) Evaluate the reasons why Linx IPO and strategy were successful.

(i) Interviews with Dennis Herszkowicz, CFO (Chief Financial Officer) of Linx; (ii) public data available in the investors relations’ website of the company.

Corporate Finance; Strategy; M&A, Capital Markets.

BERK, Jonathan and DE MARZO, Peter. (2014) “Corporate Finance”. 3rd ed. Pearson. DAMODARAN, Aswath. (2012) “Investment Valuation: Tools and Techniques for Determining the Value of any Asset”. 3rd ed. Wiley Finance. PRAHALAD, C. K. and HAMEL, Gary. (1990) “The Core Competence of the Corporation”. Harvard Business School Publishing Corporation. May-June, 1990: 79-91. ROSS, Stephen, WESTERFIELD, Randolph and JAFFE, Jeffrey. (2013) “Corporate Finance”. 10th ed. Irwin McGraw-Hill Publishers.