Publications

May 2007
Article

Aspects of Endowment: A Query Theory of Value Construction

By: Eric Johnson, Gerald Häubl and Anat Keinan

How do people judge the monetary value of objects? One clue is provided by the typical endowment study (D. Kahneman, J. L. Knetsch, & R. H. Thaler, 1991), in which participants are randomly given either a good, such as a coffee mug, that they may later sell ("sellers")... View Details

Keywords: Profit; Forecasting and Prediction; Theory; Valuation; Loss; Ownership; Decision Choices and Conditions

June 2001 (Revised September 2011)
Case

PepsiCo's Bid for Quaker Oats (A)

By: Carliss Y. Baldwin and Leonid P Sudakov

Throughout 1999, PepsiCo closely tracked several potential strategic acquisitions. In the fall of 2000, it appeared that the right moment for an equity-financed acquisition had arrived. At this time, PepsiCo management decided to initiate confidential discussions with... View Details

Keywords: Mergers and Acquisitions; Private Equity; Stock Shares; Negotiation; Strategy; Valuation; Food and Beverage Industry

11 Jun 2013
First Look

First Look: June 11

in 2007. A sizeable portion of the growth can be explained by rising asset management fees, which in turn were driven by increases in the valuation of tradable assets, particularly equity. Another important factor was growth in fees... View Details

Keywords: Carmen Nobel

January 2005 (Revised November 2014)
Case

Arch Wireless, Inc.

By: Stuart C. Gilson and Perry L. Fagan

The largest wireless paging company in the United States has to restructure its debt in response to the collapse of its market. The restructuring faces formidable challenges. Valuing the company is extremely difficult because Arch's public competitors are also severely... View Details

Keywords: Restructuring; Borrowing and Debt; Insolvency and Bankruptcy; Organizational Structure; Valuation

22 Apr 2020
Research Event

How Investors Are Sizing Up Climate Change’s Risks—and Opportunities

Litterman, who spent years leading risk management efforts at Goldman Sachs, says that this economic shift will lead to dramatic changes in valuations and other aspects of society. For that reason, investors should understand the risk... View Details

Keywords: by Danielle Kost; Financial Services

December 1984 (Revised July 2005)
Case

Burnet vs. Logan

By: Henry B. Reiling

The taxpayer sold mining company stocks and was to be paid royalty as ore was extracted from the corporation's mine. Because the factual issues of whether ore would be extracted and, if so, how much and when were so indeterminate, the court held that the contract right... View Details

Keywords: Taxation; Law Enforcement; Asset Management; Valuation; Policy; Mining Industry

January 2017
Supplement

T. Rowe Price and the Dell Inc. MBO (B)

By: Lena G. Goldberg

After deciding to oppose the Dell MBO, T. Rowe Price, together with other dissident Dell shareholders, sought appraisal of their shares in the Delaware courts. The appraisal process resulted in a significant increase in the price to be paid to dissenting shareholders... View Details

Keywords: Fiduciary Duties; Management Buy-out; Ethics; Valuation; Courts and Trials; Business and Shareholder Relations; Restructuring; Financial Services Industry; Computer Industry; Delaware

June 1997
Case

Olympic Financial Ltd.

By: Krishna G. Palepu and Sarayu Srinivasan

Olympic Financial is a sub-prime lender in the auto financing industry. Several other financing companies have been wrought with accounting fraud and business mismanagement. Olympic's debt has been downgraded, and its stock has been denigrated although the company is... View Details

Keywords: Business or Company Management; Crime and Corruption; Valuation; Financial Reporting; Credit; Financial Services Industry

November 2007 (Revised June 2016)
Case

British Land

By: Lucy White

British Land's shares traded below NAV. Laxey investments tried to force British Land into share buybacks and criticized its corporate governance. Laxey voted borrowed shares at the AGM. View Details

Keywords: Stock Shares; Valuation; Property; Investment; Corporate Governance; Real Estate Industry; London

May 2002 (Revised May 2003)
Exercise

Endeca Negotiation, The: Hardy Smith

By: G. Felda Hardymon, Josh Lerner and Ann Leamon

Students play the role of Hardy Smith, one of the founding investors of a venture-backed enterprise software company. In the challenging financing climate of the fall of 2001, he is trying to decide what terms to offer the company as an insider-funded C-round. Presents... View Details

Keywords: Negotiation Process; Negotiation Offer; Management Teams; Venture Capital; Valuation; Software; Information Technology Industry; Web Services Industry

May 2002 (Revised May 2003)
Exercise

Endeca Negotiation, The: Steve Papa

By: G. Felda Hardymon, Josh Lerner and Ann Leamon

Students play the role of Steve Papa, the CEO and founder of a venture-backed enterprise software company. In the challenging financing climate of the fall of 2001, he knows that two different groups are about to submit term sheets for his company's C-round. He is... View Details

Keywords: Negotiation Process; Negotiation Offer; Management Teams; Venture Capital; Valuation; Software; Information Technology Industry; Web Services Industry

August 1998
Case

Record Masters

By: William A. Sahlman, Michael J. Roberts and Laurence E. Katz

Kent Dauten, a former general partner at the Chicago private equity firm of Madison Dearborn Partners, has engaged in a search to personally sponsor a buyout in which he can play an active management role. He has received a selling memorandum for Record Masters, a... View Details

Keywords: Risk and Uncertainty; Leveraged Buyouts; Valuation; Negotiation Deal; Investment

June 2016 (Revised May 2017)
Case

FANUC Corporation: Reassessing the Firm's Governance and Financial Policies

By: Benjamin C. Esty, Nobuo Sato and Akiko Kanno

In February 2015, Daniel Loeb (a U.S.–based activist investor) announced his firm had a large investment in FANUC Corporation, a leading producer of industrial robots and software for machine tools. Loeb was demanding that the Japanese firm change its financial and... View Details

Keywords: Hedge Funds; Economic Policy; Investments; Government Policy; Deregulation; Financial Management; Valuation; Investment Funds; Policy; Corporate Governance; Macroeconomics; Investment Activism; Change Management; Financial Strategy; Cross-Cultural and Cross-Border Issues; Japan; United States

12 May 2016
News

Food Rescue Is on a Mission

models are very powerful,” he explains. “We have trucks that do deliveries, but the innovation is in how we are able to suit local needs, with many different collection models customized for local circumstances.” For Carson, a founder of PPB Advisory, a specialist firm... View Details

Keywords: Jill Radsken

15 Nov 2001
Research & Ideas

Five Questions for Paul Gompers and Josh Lerner

booms, we have seen the impositions of tougher standards by venture capitalists when examining whether to fund or refinance companies, a decrease in the valuations assigned to these firms, and a slowing of the frenetic pace of investment.... View Details

Keywords: by Carol Elsen; Financial Services

October 2024
Teaching Note

BWX Technologies

By: Suraj Srinivasan and Yuan Zou

Teaching Note for HBS Case No. 124-071. View Details

Keywords: Transformation; Communication Intention and Meaning; Business and Shareholder Relations; Valuation; Diversification; United States; Canada

October 2006 (Revised April 2008)
Case

Ben Walter

By: Andre F. Perold and David S. Scharfstein

Ben Walter is thinking of purchasing Butler Lumber and needs to decide how he would run the business and how much to pay for it. View Details

Keywords: Mergers and Acquisitions; Decision Choices and Conditions; Investment; Valuation

April 2004 (Revised December 2004)
Case

Jazztel

By: Marc L. Bertoneche, Laurent Jacque, Kenneth Hynes and Jennifer Woolman

Jazztel--an upstart Spanish telecom--is considering an IPO on the NASDAQ (rather than the Madrid Bolsa) for funding its ambitious capital expenditure program estimated at $750 million over the next 10 years. The alternative would be another round of high-yield debt.... View Details

Keywords: History; Initial Public Offering; Valuation; Privatization; Financing and Loans; Financial Strategy; Telecommunications Industry; Spain