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  • 12 Feb 2018
  • Working Paper Summaries

Private Equity, Jobs, and Productivity: Reply to Ayash and Rastad

Keywords: by Steven J. Davis, John Haltiwanger, Kyle Handley, Ron S. Jarmin, Josh Lerner, and Javier Miranda
  • January 1997 (Revised November 1997)
  • Case

Fojtasek Companies and Heritage Partners, The: March 1995

By: Samuel L. Hayes III and Josh Lerner
The Fojtasek Companies, a family business, faces several financing choices to address generational succession issues. Several buyouts have expressed interest in acquiring the firm outright; an investment bank has proposed a leveraged recapitalization; and a private... View Details
Keywords: Family Ownership; Financing and Loans; Private Equity; Mergers and Acquisitions; Investment Banking; Partners and Partnerships; Management Succession; Capital Structure; Financial Strategy
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Hayes, Samuel L., III, and Josh Lerner. "Fojtasek Companies and Heritage Partners, The: March 1995." Harvard Business School Case 297-046, January 1997. (Revised November 1997.)
  • January 2007 (Revised March 2011)
  • Case

Yale University Investments Office: August 2006

By: Josh Lerner
The Yale Investments Office must decide whether to continue to allocate the bulk of the university's endowment to illiquid investments--hedge funds, private equity, real estate, and so forth. Considers the risks and benefits of a different asset allocation strategy.... View Details
Keywords: Higher Education; Asset Management; Financial Management; Financial Strategy; Investment Portfolio; Risk Management
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Lerner, Josh. "Yale University Investments Office: August 2006." Harvard Business School Case 807-073, January 2007. (Revised March 2011.)
  • 08 Nov 2011
  • First Look

First Look: Nov. 8

J. Davis, John Haltiwanger, Ron Jarmin, Josh Lerner, and Javier Miranda Abstract Private equity critics claim that leveraged buyouts bring huge job losses. To investigate this claim, we construct and analyze a new dataset that covers U.S.... View Details
Keywords: Sean Silverthorne
  • December 1998 (Revised January 2004)
  • Case

Singulus

By: Walter Kuemmerle and Chad S Ellis
Describes Singulus, the compact disk metallizer business of Leybold AG, a large German company, which has been put up for sale. In April 1995, buyout firm Schroder Ventures has to decide whether to acquire the business. The investment decision is complicated by a... View Details
Keywords: Leveraged Buyouts; Decision Choices and Conditions; Manufacturing Industry; Germany
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Kuemmerle, Walter, and Chad S Ellis. "Singulus." Harvard Business School Case 899-074, December 1998. (Revised January 2004.)
  • January 2009 (Revised May 2010)
  • Case

Altoona State Investment Board: December 2008

By: Josh Lerner
Rod Calhoun, the head of the Altoona State Investment Board's private equity investment program, considered the communication he had just received. It was from Permira, the leading European buyout fund, and concerned its fourth fund, to which Altoona had made a £ 100... View Details
Keywords: Private Equity; Financial Management; Financial Strategy; Investment Funds; Partners and Partnerships
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Lerner, Josh. "Altoona State Investment Board: December 2008." Harvard Business School Case 809-095, January 2009. (Revised May 2010.)
  • July 2021
  • Teaching Note

The Carlyle Group: Carving Out Atotech

By: Rosabeth Moss Kanter
Teaching Note for HBS Case No. 321-153. On January 31, 2017, The Carlyle Group ("Carlyle") closed its $3.2 billion acquisition of Atotech, an international Specialty Chemicals and Equipment company. In Carlyle's Washington, DC headquarters, the US-based deal... View Details
Keywords: Oil & Gas; Deal; International Acquisition; International; Acquisition; Negotiation; Negotiation Deal; Transformation; Chemicals; Markets; Bids and Bidding; Globalized Markets and Industries; Standards; Chemical Industry; United States; Europe; Asia; Germany
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Kanter, Rosabeth Moss. "The Carlyle Group: Carving Out Atotech." Harvard Business School Teaching Note 322-022, July 2021.
  • August 2021
  • Case

Apax Digital

By: Jo Tango and Alys Ferragamo
The Apax Digital team faced important decisions as they contemplated raising a second fund. Apax Digital Fund I was a $1.1 billion vehicle focused on mid-market growth equity and growth buyouts in the technology sector. The fund had performed well, and the Managing... View Details
Keywords: Growth and Development Strategy; Acquisition; Investment Portfolio; Decision Choices and Conditions; Venture Capital; Technology Industry; Financial Services Industry; United States
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Tango, Jo, and Alys Ferragamo. "Apax Digital." Harvard Business School Case 822-016, August 2021.
  • February 2021 (Revised June 2021)
  • Case

Barbarians at the Gate or Turnaround Gurus? Private Equity and the Rise of the LBO

By: Tom Nicholas and John Masko
During the 1980s, leveraged buyouts (LBOs) and the private equity (PE) firms responsible for carrying them out revolutionized both investment and management in the U.S. Between 1980 and 1989, buyout activity in the U.S. surged from $1 billion per year to $60 billion.... View Details
Keywords: Leveraged Buyouts; Mergers and Acquisitions; Business Conglomerates; Restructuring; Borrowing and Debt; Private Equity; Bonds; Investment Return; Institutional Investing; Profit Sharing; Business History; Management Style; Private Ownership; Performance Effectiveness; Value Creation; Financial Services Industry; United States
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Nicholas, Tom, and John Masko. "Barbarians at the Gate or Turnaround Gurus? Private Equity and the Rise of the LBO." Harvard Business School Case 821-016, February 2021. (Revised June 2021.)
  • November 2011
  • Compilation

VCPE Strategy Vignettes: 2012

By: Josh Lerner, Felda Hardymon, Matthew Rhodes-Kropf, Ann Leamon and Lisa Strope
This compilation of five vignettes depicts common challenges confronting venture capital and leveraged buyout groups. They range from when to deviate from a strategy and how to manage an inept but well-connected executive to equity splits among founders and whether to... View Details
Keywords: Strategy
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Lerner, Josh, Felda Hardymon, Matthew Rhodes-Kropf, Ann Leamon, and Lisa Strope. "VCPE Strategy Vignettes: 2012." Harvard Business School Compilation 812-073, November 2011.
  • January 2002 (Revised April 2002)
  • Case

Martin Smith: May 2002

By: G. Felda Hardymon, Josh Lerner and Ann Leamon
Martin Smith, a recent HBS graduate, has just begun working with a leveraged buyout firm. His first assignment is to evaluate three different deals and make recommendations to the partners. As he studies the deals, he realizes that each has different merits and... View Details
Keywords: Leveraged Buyouts; Personal Development and Career; Financial Strategy; Partners and Partnerships
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Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Martin Smith: May 2002." Harvard Business School Case 802-160, January 2002. (Revised April 2002.)
  • February 2016 (Revised March 2019)
  • Case

Bankruptcy at Caesars Entertainment

By: Kristin Mugford and David Chan
Caesars Entertainment was a large casino operator in the United States that had been purchased in a 2008 leveraged buyout by Apollo and TPG. In January 2015, Caesars Entertainment Operating Company (CEOC), its largest subsidiary, filed for Chapter 11. This set up a... View Details
Keywords: Gaming; Chapter 11; Fraudulent Conveyance; Apollo; TPG; Bankruptcy; Leveraged Buyouts; Restructuring; Capital Structure; Insolvency and Bankruptcy; Private Equity; Financial Management; Lawsuits and Litigation; Negotiation; Games, Gaming, and Gambling; Entertainment and Recreation Industry; Las Vegas
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Mugford, Kristin, and David Chan. "Bankruptcy at Caesars Entertainment." Harvard Business School Case 216-052, February 2016. (Revised March 2019.)
  • 2012
  • Book

Venture Capital, Private Equity, and the Financing of Entrepreneurship

By: Josh Lerner, Ann Leamon and Felda Hardymon
Venture Capital, Private Equity, and the Financing of Entrepreneurship stems from a realization that private equity overall—defined in this volume as venture capital and buyouts but excluding hedge funds—has become a vastly more sizable and influential part of the... View Details
Keywords: Venture Capital; Private Equity; Financing and Loans; Entrepreneurship
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Lerner, Josh, Ann Leamon, and Felda Hardymon. Venture Capital, Private Equity, and the Financing of Entrepreneurship. New York: John Wiley & Sons, 2012.
  • March 1995 (Revised April 1995)
  • Case

UAL Corporation

By: Stuart C. Gilson and Jeremy Cott
In the largest attempted employee-buyout in history, a large U.S. commercial airline seeks substantial wage concessions from its employees in return for 53% stake in the airline's commmon stock and guaranteed seats on the board of directors. Management must convince... View Details
Keywords: Restructuring; Corporate Governance; Labor; Wages; Management Teams; Employee Ownership; Business and Shareholder Relations; Strategy; Value; United States
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Gilson, Stuart C., and Jeremy Cott. "UAL Corporation." Harvard Business School Case 295-130, March 1995. (Revised April 1995.)
  • January 2004 (Revised May 2004)
  • Case

Montagu Private Equity (A)

By: G. Felda Hardymon, Josh Lerner and Ann Leamon
Describes the dilemma facing Chris Masterson, the head of HSBC's private equity division, in negotiating this team's buyout of its organization from HSBC, its corporate parent since 1992. Discusses the pros and cons of being a captive fund and the delicate balance... View Details
Keywords: Private Equity; Balance and Stability; Asset Pricing
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Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Montagu Private Equity (A)." Harvard Business School Case 804-051, January 2004. (Revised May 2004.)
  • October 2007 (Revised January 2009)
  • Case

The Hertz Corporation (A)

By: Timothy A. Luehrman and Douglas Scott
Examines the leveraged buyout of Hertz in 2005, a complex, high-profile deal and a good example of cutting-edge practice in private equity. The first of a two-part series on the Hertz LBO, adopts the perspective of Clayton, Dubilier & Rice, the leader of a private... View Details
Keywords: Leveraged Buyouts; Private Equity; Bids and Bidding; Negotiation Deal; Valuation; Value Creation; Financial Services Industry; United States
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Luehrman, Timothy A., and Douglas Scott. "The Hertz Corporation (A)." Harvard Business School Case 208-030, October 2007. (Revised January 2009.)
  • November 1996 (Revised August 1997)
  • Case

Project "Dial-Tone"

By: William A. Sahlman and Andrew S. Janower
Bob Hellman, a partner in a West Coast middle-market buyout firm, is attempting to simultaneously acquire and merge three disparate firms in the rapidly consolidating telemarketing services industry. Hellman must value the individual companies as well as the combined... View Details
Keywords: Complexity; Private Equity; Integration; Mergers and Acquisitions; Negotiation Deal; Strategic Planning; Investment; Opportunities; Valuation; Service Industry
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Sahlman, William A., and Andrew S. Janower. Project "Dial-Tone". Harvard Business School Case 897-003, November 1996. (Revised August 1997.)
  • 2013
  • Working Paper

The Operational Consequences of Private Equity Buyouts: Evidence from the Restaurant Industry

By: Albert W. Sheen and Shai Bernstein
What, if anything, do private equity firms do with businesses they acquire? We find evidence of significant operational changes in 101 restaurant chain buyouts between 2002 and 2012. Analysis of health inspections conducted for over 50,000 stores in Florida shows that... View Details
Keywords: Safety; Quality; Private Equity; Food; Management Practices and Processes; Leveraged Buyouts; Performance Efficiency; Retail Industry; Food and Beverage Industry; Florida
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Sheen, Albert W., and Shai Bernstein. "The Operational Consequences of Private Equity Buyouts: Evidence from the Restaurant Industry." Working Paper, June 2013.
  • October 2000
  • Supplement

Singulus: Reflections by Roland Lacher

On January 14, 1999, Roland Lacher of Singulus, speaks to Harvard Business School students about the company he chairs. This video supplements the case and can be shown at the end of class. Roland Lacher describes the drivers of his decision whether to join Singulus.... View Details
Keywords: Management; Entrepreneurship
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Kuemmerle, Walter. "Singulus: Reflections by Roland Lacher." Harvard Business School Video Supplement 801-803, October 2000.
  • September 1986 (Revised July 2001)
  • Case

Eastern Electric Apparatus Repair Company (A)

By: Carliss Y. Baldwin and Harry Gruner
As principals engaged in structuring leveraged buyouts for a well-capitalized risk arbitrage firm, Bob Meehan and George Schwartz are preparing to bid for the business and assets of a Westinghouse subsidiary. The case focuses on the value of the opportunity, methods of... View Details
Keywords: Leveraged Buyouts; Bids and Bidding; Opportunities; Business Subsidiaries; Strategy; Valuation; Equity; Electronics Industry
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Baldwin, Carliss Y., and Harry Gruner. "Eastern Electric Apparatus Repair Company (A)." Harvard Business School Case 287-023, September 1986. (Revised July 2001.)
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