Case Name :      Growth and Transition at Onex Corporation

Authors :           W. Glenn Rowe, Rod E. White, Maria Semenova

Source :              Ivey Publishing

Case ID :           9B16M123 / W16439

Discipline :        General Management

Case Length :    16 pages

Plagiarism : NO (100% Original work)

Over its 30-year history, Onex Corporation, a Canadian investment firm, had derived much of its success from the private equity sector. It did so by acquiring attractive portfolio companies, adding value to them by improving their financial and operational performance, and then selling them several years later at an attractive return. However, given the market conditions in 2015, Onex Corporation faced difficulty in successfully acquiring target companies, which was further exacerbated by the large amounts of cash on its balance sheet. As a result, the firm was forced to actively seek growth in other sectors, primarily credit-oriented investment strategies. Given Onex Corporation’s growth targets, the chief executive officer and his management team needed to reconsider the lines of business their company should be involved in. How could they effectively position the company’s corporate structure, internal processes, and expertise to take advantage of credit-oriented investment strategies?