Publications

June 2001
Case

Bang Networks- The First Customer (A)

By: Jay O. Light and Mary N. Caravella

In November 2000, six-month-old start-up Bang Networks is preparing a proposal for its first paid subscription contract. The recent MBA founders of the new San Francisco--based company believe they have a unique new solution for effective delivery of real-time Web... View Details

Keywords: Business Startups; Negotiation Tactics; Internet and the Web; Valuation; Value Creation; Negotiation Preparation; Information Technology Industry; San Francisco

January 2001
Case

First Community Bank (B): Community Banking Group

By: Rosabeth M. Kanter and Daniel Galvin

After nine years of leading First Community Bank (FCB), BankBoston's unique venture targeting low- to moderate-income communities, and finally gaining recognition and respect for her efforts, Gail Snowden must once again faces the challenge of justifying FCB's value,... View Details

Keywords: Mergers and Acquisitions; Valuation; Organizational Change and Adaptation; Problems and Challenges; Business and Community Relations; Banking Industry

06 May 2015
Research & Ideas

A Flood of Picassos Threatens to Water Down the Art Market

Khaire said. "But there is a need to balance that out with the realities of the economic world, and it's often a difficult balance. Any of these big signature art events end up having that tension." Another part of that tension is how View Details

26 Nov 2001
Research & Ideas

Women Entrepreneurs Use Springboard for Funding

a great time to be a venture capitalist and to be an entrepreneur, he added. Although diminished valuations are frustrating to some entrepreneurs, he said, the really dangerous time was two years ago when companies were being built too... View Details

Keywords: by Martha Lagace

09 May 2000
Research & Ideas

Stock Options Are Not All Created Equal

for the next three years. Or it may tie the value to some percentage of the executive's cash compensation, enabling the grant to grow as the executive's salary or salary plus bonus increases. The value of the options is typically determined using Black-Scholes or... View Details

Keywords: by Brian Hall

23 Nov 1999
Research & Ideas

The Future of the Venture Capital Cycle

with a rapid increase in capital commitments have led to less restrictive partnership agreements, large investments in portfolio firms, and higher valuations for those investments. These patterns have led many practitioners to conclude... View Details

Keywords: by Paul A. Gompers & Josh Lerner; Financial Services

March 1996
Case

Telmex PRIDES

By: Kenneth A. Froot and Mark Seasholes

The case examines an issue by a Mexican development bank of PRIDES written on Telmex stock. PRIDES are a dividend-enhanced security which are exchangeable into shares of the underlying stock. The focus is on pricing these instruments, which involve large... View Details

Keywords: Financial Derivatives; Securities; International Finance; Banks and Banking; Financial Instruments; Valuation; Mexico

Article

The Cross Section of Bank Value

By: Mark Egan, Stefan Lewellen and Adi Sunderam

We study the determinants of value creation in U.S. commercial banks. We develop novel measures of individual banks' productivities at collecting deposits and making loans. We relate these measures to bank market values and find that deposit productivity is responsible... View Details

Keywords: Productivity; Banks and Banking; Valuation; Performance Productivity; Value Creation; United States

Read Now

August 2016
Teaching Note

Songy 2011: Restructuring to Survive (Or, Surviving to Restructure?)

By: Charles F. Wu and Alexander W. Schultz

In 2011, Songy Partners, an Atlanta based real estate developer, was facing three distressed investments within their portfolio each with distinct sets of challenges. Having weathered a myriad of issues during the Global Financial Crisis which included operational... View Details

Keywords: Distressed Debt; Real Estate; Limited Partners; Cap Rates; Partners and Partnerships; Valuation; Investment; Property; Borrowing and Debt; Real Estate Industry; Atlanta

August 2014 (Revised March 2015)
Case

Molycorp: Morgan Brothers' Reverse Convertible Notes (C)

By: Benjamin C. Esty and E. Scott Mayfield

In August 2011, Morgan Brothers Bank was issuing a $2.5 million reverse convertible note with payoffs linked to the price of Molycorp's common stock. These financially engineered securities were just one of many kinds of structured notes available in the retail market.... View Details

Keywords: Structured Products; Reverse Convertible Notes; Replication; Option Pricing; Bond Pricing; Financial Engineering; Valuation; Metals and Minerals; Debt Securities; Finance; Investment; Mining Industry; Financial Services Industry; Canada; California

January 2009
Teaching Note

The Hertz Corporation (B) (TN)

By: Timothy A. Luehrman

Teaching Note to [208031]. View Details

Keywords: Leveraged Buyouts; Private Equity; Restructuring; Valuation

October 2003 (Revised October 2004)
Case

AT&T Canada (A)

By: Andre F. Perold and Kwame C. Van Leeuwen

AT&T Canada (ATTC) is a merger arbitrage situation where AT&T Corp. has a contractual commitment to purchase the shares of ATTC at an escalating formula price. However, ATTC's business is performing poorly, and its bonds are trading at significant discounts to par.... View Details

Keywords: Agreements and Arrangements; Valuation; Mergers and Acquisitions; Investment; Telecommunications Industry; Canada

June 2001 (Revised August 2003)
Case

Home Depot, Inc. in the New Millennium

By: Krishna G. Palepu and Jeremy Cott

After nearly two decades of spectacular performance, Home Depot reported a disappointing performance in the year 2000. The company began expanding its business scope as a result of saturating its growth in the core business. This case explores whether the disappointing... View Details

Keywords: Growth Management; Expansion; Valuation; Performance; Business Strategy; Corporate Finance; Retail Industry

23 Apr 2013
First Look

First Look: April 23

and prices as a function of the consumer population's valuation for the service and show that competition has three main effects on the marketplace. First, competition drives the provision of services with a low level of disclosure.... View Details

Keywords: Sean Silverthorne

10 May 2011
First Look

First Look: May 10

reflect fundamental values in the current environment. After announcing the alternative valuation methodology in September 2009, he must convince industry participants—ship owners, appraisers, and bankers—to adopt the new View Details

Keywords: Sean Silverthorne

March 1998
Case

Bumper Acquisition (A2), A: Confidential Information for Medallion Capital, Inc.

By: James K. Sebenius and David T. Kotchen

Located in Mundelein, IL, Thermo-Impact, Inc. is a rapidly growing, private firm that manufactures automotive bumpers. In 1995, a number of large automotive supply companies and a private equity investment firm offer to buy Thermo-Impact. The cases in this series focus... View Details

Keywords: Private Equity; Valuation; Negotiation Participants; Decision Making; Negotiation Process; Entrepreneurship; Negotiation Offer; Acquisition; Manufacturing Industry; Auto Industry; Illinois

05 Apr 2016
First Look

April 5, 2016

unprofitable Sakai manufacturing plant. This case explores the dynamics of the deal and specifically focuses on valuation of the investment in the Sakai plant as well as the structure of the deal. It presents a vehicle by which to... View Details

Keywords: Sean Silverthlorne

June 1991 (Revised July 1993)
Case

Sunbeam Oster Co., Inc.

By: Steven R. Fenster

Japonica Partners, an investment firm, is trying to determine whether there is any unseen value in Sunbeam Oster Co., Inc., a Chapter 11 debtor. If there is, Japonica must consider the means by which they can acquire control of a company in Chapter 11. View Details

Keywords: Valuation; Insolvency and Bankruptcy; Acquisition; Financial Services Industry

October 2023
Case

Lasell University in 2023: Securing the Future

By: John Jong-Hyun Kim and Mary C. Sauer

In a groundbreaking move on September 20, 2022, Lasell University's President, Michael B. Alexander, announced an extraordinary 33% reduction in tuition, room, board, and fees, signaling a pivotal shift in higher education. Situated in an affluent Boston suburb,... View Details

Keywords: Higher Education; Cost; Valuation; Competitive Advantage; Education Industry; United States; Massachusetts