Business Case Studies & Business Publications

Pricing Efficiency in Post-Pandemic Equi...

Schill, Michael J....

Case

Pricing Efficiency in Post-Pandemic Equity Offerings

Schill, Michael J.; Kotter, Logan

H-2112 | Published October 28, 2025 | 23 Pages Case

Collection: Darden School of Business

Product Details

This case examines the October 2023 initial public offering (IPO) of Birkenstock, the iconic German footwear maker. Students are invited to recommend the price at which Birkenstock should sell the shares offered in the IPO. Relevant considerations include the recent underperformance of a number of comparable IPOs and the influence of majority owner private equity firm L Catterton and luxury powerhouse LVMH. The case is designed to showcase corporate valuation using discounted cash flow (DCF) and peer-company market multiples for a company with high near-term growth and profitability. At the University of Virginia Darden School of Business, it is taught in the core finance curriculum.

The case provides opportunities to develop any of the following teaching objectives: (1) Hone corporate valuation skills using market multiples and DCF. (2) Develop an appreciation for the considerations associated with identifying an appropriate set of comparable companies. (3) Review the institutional aspects of the IPO transaction and the costs and benefits associated with public share offerings.