Publications

October 1988 (Revised February 1989)
Case

Tom Volpe

October 1988
Case

Harris Seafoods Leveraged Buyout

Describes set of issues confronting Alison Lassiter, who is trying to help Charlie Harris arrange a leveraged buyout of the shrimp company he runs, a division of a publicly traded company, Katy Industries. Lassiter has prepared a memorandum discussing and analyzing the... View Details

Keywords: Leveraged Buyouts; Venture Capital; Financing and Loans; Equity; Cost vs Benefits; Negotiation Tactics; Negotiation Preparation; Financial Management; Strategy; Management Analysis, Tools, and Techniques; Planning; Food and Beverage Industry; Industrial Products Industry

October 1988 (Revised November 1988)
Case

Runtal North America, Inc.

Keywords: United States

July 1988 (Revised November 1988)
Case

Superior Wire (A)

Keywords: Industrial Products Industry

July 1988
Case

Superior Wire (B)

Keywords: Industrial Products Industry

summer 1988
Article

Aspects of Financial Contracting in Venture Capital

Keywords: Venture Capital; Finance

October 1987 (Revised January 2013)
Background Note

Note on Free Cash Flow Valuation Models

Explores some of the issues involved in valuing cash flow streams. A simple model is presented that reveals the effect on value of changing assumptions about the appropriate discount rate, the level of profitability, the growth rate of sales, the asset intensity ratio,... View Details

Keywords: Cash Flow; Valuation

September 1987
Background Note

What Do Venture Capitalists Do?

Presents the results derived from 49 responses to a questionnaire mailed to 100 venture capitalists in late 1984. The purpose of the survey was to shed light on the relationship between venture capitalists and their portfolio companies. The survey revealed that the... View Details

Keywords: Borrowing and Debt; Venture Capital; Investment Portfolio; Recruitment; Surveys; Managerial Roles; Service Operations; Relationships; Service Industry

August 1987 (Revised September 1988)
Case

Sarah Jenks-Daly

August 1987 (Revised June 1989)
Background Note

Note on Financial Contracting: ""Deals""

Describes the issues involved in designing and evaluating financial contracts between users and suppliers of capital and between companies and employees. A simple conceptual framework is introduced and some critical issues addressed: 1) How is cash allocated? 2) How is... View Details

Keywords: Contracts; Framework; Problems and Challenges; Corporate Finance

August 1987 (Revised December 1998)
Background Note

Capital Market Myopia

By: William A. Sahlman and Howard H. Stevenson

Focuses attention on a phenomenon we call capital market myopia, a situation in which participants in the capital markets ignore the logical implications of their individual investment decisions. Viewed in isolation, each decision seems to make sense. When taken... View Details

Keywords: Capital Markets

July 1987 (Revised October 2009)
Background Note

A Method For Valuing High-Risk, Long-Term Investments: The "Venture Capital Method"

By: William A. Sahlman and Daniel R Scherlis

Describes a method for valuing high-risk, long-term investments such as those confronting venture capitalists. The method entails forecasting a future value (e.g., five years from the present) and discounting that terminal value back to the present by applying a high... View Details

Keywords: Forecasting and Prediction; Entrepreneurship; Venture Capital; Investment; Risk Management; Valuation

July 1987 (Revised August 1997)
Course Overview Note

Entrepreneurial Finance: Course Introduction

Designed to introduce students in Entrepreneurial Finance to the subject matter and modus operandi of the course. Also included is an annotated bibliography. View Details

Keywords: Entrepreneurship; Finance