Publications

SSRN

July 2001
Technical Note

Technical Note on LBO Valuation (A): LBO Structure and the Target IRR Method of Valuation

By: Carliss Y. Baldwin

Explains the equity cash flow method of valuation as it applies to leveraged buyouts. Also explains: 1) earnings and cash flow forecasts, 2) debt structure and the cash sweep, 3) the cashing out horizon and terminal valuation, and 4) the target IRR method of valuation. View Details

Keywords: Valuation; Leveraged Buyouts; Capital Budgeting; Borrowing and Debt; Cash Flow; Equity; Profit; Price; Forecasting and Prediction

02 Jun 2008
Research & Ideas

Spending on Happiness

A: We found that it was the relative percentage of their money that people spend on others—rather than the absolute amount—that predicted their happiness. In the bonus study described above, for example, the size of the bonus that people... View Details

Keywords: by Sarah Jane Gilbert

09 Mar 2023
Blog Post

Port Esbjerg: Deploying Offshore Wind

Approximately 80% of Europe’s current offshore wind capacity has passed through the port. As the world seeks to reduce its reliance on fossil fuels, offshore wind is expected to play an increasingly important role in providing renewable energy. Experts View Details

01 Mar 2012
News

Alumni Book Briefs

China, and others will grow rapidly. The authors predict probable new principles for commercial success, among them that an obsession with return on equity will give way to more broad-based measurements of success, and that Adam Smith’s... View Details

Keywords: Publishing Industries (except Internet); Information

May 1987 (Revised February 2000)
Case

Codman & Shurtleff, Inc.: Planning and Control System

By: Robert L. Simons

Detailed description of the planning and control systems in use at Johnson & Johnson. Focuses on the actions of managers in one subsidiary in revising budget targets. Illustrates intensive strategic planning and financial planning process in a large, decentralized... View Details

Keywords: Strategic Planning; Planning; Forecasting and Prediction; Accounting Audits; Budgets and Budgeting; Business Strategy; Financial Management; Business or Company Management; Management Systems; Public Administration Industry; Financial Services Industry

29 May 2001
Research & Ideas

Genomics: Can We Start Making Money Now?

predict a new world where drug treatments are customized to an individual's genetic makeup, and gene-based therapy can root out cancer and other diseases before they take hold in the body. The new science will "revolutionize the way... View Details

Keywords: by Sean Silverthorne

March 1980 (Revised February 1987)
Case

Sweco, Inc. (A)

By: Michael E. Porter and George S. Yip

Describes Sweco's decision about whether to enter the mud-processing equipment industry (used in oil well drilling). This is an internal entry decision, and the case describes Sweco's existing businesses as well as the mud-processing industry and competitors. The case... View Details

Keywords: Cost vs Benefits; Decisions; Forecasting and Prediction; Cost; Analytics and Data Science; Market Entry and Exit; Competition

27 Feb 2007
First Look

First Look: February 27, 2007

various mechanisms that are discussed in the theoretical literature on collective action. We argue that several of these intuitive theoretical arguments rely on special additional assumptions that are often not made clear. We then review the empirical work based on the... View Details

Keywords: Martha Lagace

05 Jan 2011
Op-Ed

Funding Unpredictability Around Stem-Cell Research Inflicts Heavy Cost on Scientific Progress

promising projects. Great people will leave basic research and move to more predictable pastures. And some great young people will decide not to go into research careers at all. The precipitous shift in the legal and regulatory... View Details

Keywords: by William Sahlman; Biotechnology; Health; Pharmaceutical

01 Jan 2008
News

Meg Whitman, MBA 1979

March she handed the reigns to former Bain colleague John Donahoe. Still involved as an eBay board member, Whitman is now focused on philanthropic and political endeavors. While not ready to predict her future, since May she has served as... View Details

03 Aug 2015
Research & Ideas

Why Fierce Competitors Apple and Amazon Became ’Frenemies’ Over eReaders

insufficient room to collaborate. Zhu and his collaborators predict that as digitization increasingly de-couples hardware and software in many industries, corporate frenemies may become more common. With the increasing emphasis on added... View Details

Keywords: by Michael Blanding; Information; Publishing; Technology

09 Aug 2006
Research & Ideas

Career Advancement Without Experience

manage and advance their careers in the less predictable world of contract labor. But how do you land those kinds of jobs? In "Stretchwork: Managing the Career Progression Paradox in External Labor Markets," forthcoming in the... View Details

Keywords: by Julia Hanna; Motion Pictures & Video; Technology

01 Sep 2020
News

Navigating the Populism Phenomenon

have been advocating for, which can be very unorthodox and generate economic disasters. In addition, their effects are very hard to predict because they have not been tested. The resulting uncertainty can also be costly to businesses.... View Details

Keywords: April White

January 2021
Case

Aster DM Healthcare: Budgeting for a Crisis

By: V.G. Narayanan and Amy Klopfenstein

In April 2020, Alisha Moopen, Deputy Managing Director of Aster DM Healthcare, a network of clinics, hospitals, and pharmacies in the Middle East and India, must create her company’s budget for the 2021 fiscal year in light of the onset of Covid-19. The pandemic had... View Details

Keywords: Decision Making; Decisions; Forecasting and Prediction; Judgments; Decision Choices and Conditions; Cost vs Benefits; Budgets and Budgeting; Health Pandemics; Health Industry; Asia; India; United Arab Emirates; Dubai

July 2010 (Revised December 2011)
Background Note

Marketing Analysis Toolkit: Pricing and Profitability Analysis

By: Thomas J. Steenburgh and Jill Avery

Pricing is one of the most difficult decisions marketers make and the one with the most direct and immediate impact on the firm's financial position. This toolkit will introduce the fundamental terminology and calculations associated with pricing and profitability... View Details

Keywords: Forecasting and Prediction; Price; Profit; Management Analysis, Tools, and Techniques; Marketing Strategy; Demand and Consumers; Measurement and Metrics; Strategic Planning; Mathematical Methods; Retail Industry

November 1999 (Revised July 2003)
Case

Pre-Paid Legal Services, Inc.

By: Paul M. Healy and Jacob Cohen

Pre-Paid Legal Services' business model reveals two key issues--managing the sales force and sales growth and managing claims. Students analyze the economics of the business and consider how to measure firm performance, how to evaluate and reward the sales force, and... View Details

Keywords: Financial Management; Financial Strategy; Salesforce Management; Marketing Strategy; Accrual Accounting; Business Cycles; Forecasting and Prediction; Insurance; Business Growth and Maturation; Insurance Industry