1. KENDLE INTERNATIONAL – CASE ANALYSISTeam “La Vita Loca” Jaya Bhatia, Kaushik Ghosh, Kyle Marshal, Sridhar Sarnobat, Vidhi Agrawal

2. What should Kendle do?  Scenario 1 IPO before acquisitions  Scenario 2 acquisitions before IPO  Scenario 3 acquire company – IPO – acquire company

3. Scenario 1 IPO before acquisitions PROS Fair market valuation ($34M) with a 15% premium Injection of cash will improve cash position Less leveraged as opposed to other option With a 12.67% projected ROE of Kendle will be 123% CONS Recent poor performance of CRO industry stock

4. Scenario 2 acquisitions before IPO CONS Will result in weak cash position ($101K-$164K) Unreimbursed investigator, project costs and AR raise concerns (44%~73%) Advanced billings as a percent of revenue increased by 20% Highlights potential short-term solvency concerns and the ongoing significant risk of client dependence A high amount of debt would drive the market valuation of Kendle

5. Scenario 3 Acquisition – IPO - Acquisition PROS U-Gene favorable target Injection of cash will improve cash position Less leveraged as opposed to other option With a 12.67% projected ROE of Kendle will be 123% CONS Recent poor performance of CRO industry stock

6. Recommendation