The Loewen Group
- How was the Loewen Group able to grow explosively for the first half of the 1990s? What were the advantages of debt financing enjoyed by the firm in this phase?
- How did Loewen get to the position it found itself in 1999?
- Why do you think SCI was willing to offer Loewen such a substantial premium? What incremental cash flows might SCI expect that could explain this premium? – THIS ON NEEDS AN ANSWER
- Some might describe Loewen as “financially distressed.” Is this a fair description of its problem? What are the manifestations and apparent costs of this so-called financial distress?
- What are Loewen’s alternatives? What would you recommend to John Lacey?