Publications

January 1989 (Revised October 1993)
Background Note

Note: Valuing a Business Acquisition Opportunity

By: William E. Fruhan Jr.

Describes how to value an acquisition opportunity as a capital budgeting problem. Cash flows are discounted at the cost of capital and debt is deducted to value the equity capital of the target company. A key contribution of the note is the discussion of five methods... View Details

Keywords: Valuation; Acquisition; Opportunities

01 Feb 1999
News

Q&A: Camille Tang Yeh of the Asia-Pacific Research Office

information and financial and other intermediaries. How will the Asia-Pacific region benefit from the presence of the HBS research office? The intellectual capital created by the exchange View Details

Keywords: Educational Support Services; Educational Services

November 1991 (Revised December 1996)
Case

Pressco, Inc.--1985

By: William E. Fruhan Jr.

A capital budgeting problem is viewed from the context of a marketing representative attempting to make a sale of energy saving heavy industrial equipment. Tax law changes promise to have a significant impact on the customer's decision process. Teaching purpose: To... View Details

Keywords: Capital Budgeting; Machinery and Machining; Valuation; Taxation; Customer Value and Value Chain; Cost vs Benefits; Inflation and Deflation; Cost Management; Product Marketing; North and Central America

18 Aug 2011
Lessons from the Classroom

Business Plan Contest: 15 Years of Building Better Entrepreneurs

to get good feedback that would help us understand how VCs would be looking at our business model," adds Weng. (Battery Ventures and a few private investors bought into FashionStake's vision early on.) FashionStake and other consumer Internet companies have benefited... View Details

Keywords: by Julia Hanna; Education

12 Jan 2004
What Do You Think?

How Should We Think About the Exportation of Jobs?

"In India, we are creating two different societies with a large disparity in income as well as access to knowledge and information." In large part, the comments seemed to reflect reactions to both differences in the fluidity of... View Details

Keywords: by James Heskett

07 Nov 2016
Research & Ideas

Corporate Tax Strategies Mirror Personal Returns of Top Execs

influence over the corporate tax strategy. They then reconstructed insider holdings portfolios and built-in capital gains in order to get a precise estimate of their incentives. There were three measures for... View Details

Keywords: by Roberta Holland

24 Sep 2014
Op-Ed

The ABCs of Addressing Climate Change (From a Business Perspective)

pricing, and more. The annual capital budget for New York City alone is about in excess of $5 billion. In London it is £6.3 billion, or more than $10 billion. Add up the major cities View Details

Keywords: by John Macomber; Energy; Utilities

23 Jun 2014
Research & Ideas

In Venture Capital, Birds of a Feather Lose Money Together

To illustrate the old adage that birds of a feather flock together, there may be no better example than the venture capital industry. A recent study finds that venture capitalists have a strong tendency to... View Details

Keywords: by Carmen Nobel; Financial Services

22 Feb 2016
Research & Ideas

The ‘Mother of Fair Trade’ was an Unabashed Price Protectionist

effort to strengthen “reasonable price” provisions in California law, pushing for standardized prescription compounding and pricing, as well as price schedules set by manufacturers. “The history of American View Details

Keywords: by Dina Gerdeman; Retail; Health; Legal Services

Large Shocks Travel Fast

We leverage the inflation upswing of 2022 and various granular datasets to identify robust price-setting patterns following a large supply shock. We show that the frequency of price changes increases dramatically after a large shock. We set up a parsimonious New... View Details

September 2009 (Revised June 2011)
Case

Mercury Athletic: Valuing the Opportunity

By: Timothy A. Luehrman and Joel L. Heilprin

In January 2007, West Coast Fashions, Inc., a large designer and marketer of branded apparel, announced a strategic reorganization that would result in the divestiture of their wholly owned footwear subsidiary, Mercury Athletic. John Liedtke, the head of business... View Details

Keywords: Mergers ＆ Acquisitions; Sensitivity Analysis; Cost of Capital; Restructuring; Valuation; Cash Flow; Mergers and Acquisitions; Corporate Finance; Apparel and Accessories Industry

Web

Corporate Governance and Boards of Directors - Course Catalog

students. Many of you will be entrepreneurs building and working with a board of directors as you create and grow your company. Others will join private equity or venture View Details

08 Jan 2015
News

Healthcare strategy 2015 — Back to the basics: 12 key thoughts

April 2023
Article

Are Intermediary Constraints Priced?

By: Wenxin Du, Benjamin Hebert and Amy Wang Huber

Violations of no-arbitrage conditions measure the shadow cost of intermediary constraints. Intermediary asset pricing and intertemporal hedging together imply that the risk of these constraints tightening is priced. We describe a “forward CIP trading strategy” that... View Details

Keywords: Asset Pricing; Investment Return; Risk and Uncertainty; International Finance

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