Creating Corporate Value through Structured Finance Tools: Characteristics, LBOs, and the Case of 3G Capital - Burger King

This thesis explores structured finance as a tool for corporate value creation, focusing particularly on Leveraged Buyouts (LBOs). It begins with an overview of the composition of a firm's financial structure, analyzing key value drivers and the recognized measurement indicators. The study explores structured finance, presenting its framework, key stakeholders and the main types of structured finance. A particular focus is given to LBOs, detailing their fundamental characteristics, the actors involved, and the various transaction types, while providing a step-by-step analysis of a generic LBO process. To support the theoretical framework, the thesis examines the practical case of the LBO through which 3G Capital acquired Burger King, describing the transaction's background, the valuation criteria applied, and, most notably, the post-transaction strategies, such as re-franchising and international expansion, essential to the operation’s success. The research highlights the critical role of each process in transactions where financial leverage and operational strategies must align to sustain each other, ensuring a balanced and sustainable framework for companies. Finally, the thesis reviews and analyzes the existing literature on structured finance, complemented by original insights drawn from the case study data, demonstrating that these financial instruments are not merely "emergency solutions" but can serve as proactive and strategic tools in the dynamics of value creation.