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  • All HBS Web  (284)
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  • December 1996 (Revised July 1997)
  • Case

USG Corporation

By: Benjamin C. Esty and Tara L. Nells
In 1988, USG was the world's largest gypsum producer and one of the world's largest building-products companies. On May 2, 1988, USG's board of directors announced a proposed leveraged recapitalization plan to thwart a hostile cash tender offer by Desert Partners. With... View Details
Keywords: Capital Structure; Mergers and Acquisitions; Corporate Governance; Valuation; Cash Flow; Leveraged Buyouts; Restructuring; United States
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Esty, Benjamin C., and Tara L. Nells. "USG Corporation." Harvard Business School Case 297-052, December 1996. (Revised July 1997.)
  • December 2010
  • Case

Fortis Industries, Inc. (A)

Fortis Industries' packaging division manufactures steel and plastic strapping. In 2007, the company underwent a leveraged buyout. The case focuses on the packaging division's need to maintain high profitability in a declining market for steel strapping. Since 1998,... View Details
Keywords: Leveraged Buyouts; Decision Choices and Conditions; Marketing; Supply and Industry; Manufacturing Industry
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Moriarty, Rowland T., David May, and Gordon Swartz. "Fortis Industries, Inc. (A)." Harvard Business School Case 511-079, December 2010.
  • August 1999 (Revised February 2000)
  • Case

Cisco Systems, Inc.: Acquisition Integration for Manufacturing (A)

By: Steven C. Wheelwright, Charles A. Holloway, Nicole Tempest and Christian G. Kasper
Describes the procedures and processes used by Cisco Systems in its acquisition of high-technology firms. Its goal is to retain key engineering talent and to leverage existing product development efforts, but to quickly merge acquired companies its own systems and... View Details
Keywords: Information Technology; Leveraged Buyouts; Acquisition; Integration; Mergers and Acquisitions; Production; Activity Based Costing and Management; Corporate Entrepreneurship; Innovation and Management; Technological Innovation; Talent and Talent Management; Human Resources; Manufacturing Industry; Technology Industry; England
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Wheelwright, Steven C., Charles A. Holloway, Nicole Tempest, and Christian G. Kasper. "Cisco Systems, Inc.: Acquisition Integration for Manufacturing (A)." Harvard Business School Case 600-015, August 1999. (Revised February 2000.)
  • May 2011 (Revised March 2012)
  • Case

InterfaceRAISE: Sustainability Consulting

By: Michael W. Toffel, Robert G. Eccles and Casey Taylor
InterfaceRAISE is a sustainability management consulting firm created to leverage the capabilities of its parent company Interface Inc., a carpet manufacturer recognized as a global leader in corporate environmental sustainability. This case illustrates the challenges... View Details
Keywords: Problems and Challenges; Integrated Corporate Reporting; Corporate Social Responsibility and Impact; Entrepreneurship; Performance; Environmental Accounting; Profit; Marketing Strategy; Human Resources; Business Model; Leveraged Buyouts; Salesforce Management; Consulting Industry; Manufacturing Industry
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Toffel, Michael W., Robert G. Eccles, and Casey Taylor. "InterfaceRAISE: Sustainability Consulting." Harvard Business School Case 611-069, May 2011. (Revised March 2012.)
  • March 2011
  • Supplement

Countrywide plc (CW)

By: Stuart C. Gilson and Sarah L. Abbott
One of the world's leading investors in distressed companies, Oaktree Capital Management is contemplating a "loan to own" investment in the debt f Countrywide plc, a financially troubled residential real estate agent based in the U.K. Only sixteen months earlier,... View Details
Keywords: Leveraged Buyouts; Restructuring; Economic Slowdown and Stagnation; Assets; Borrowing and Debt; Private Equity; Insolvency and Bankruptcy; Investment Portfolio; Crisis Management; Strategy; Valuation; Real Estate Industry; United Kingdom
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Gilson, Stuart C., and Sarah L. Abbott. "Countrywide plc (CW)." Harvard Business School Spreadsheet Supplement 211-714, March 2011.
  • August 2006 (Revised February 2009)
  • Case

Medco Energi Internasional

In late 2004, Hilmi Panigoro, CEO of the publicly traded Indonesian oil company Medco Energi Internasional, is striving to regain majority control of the company his brother Arifin founded in 1980. The Asian financial crisis of 1999 led to a major restructuring that... View Details
Keywords: Leveraged Buyouts; Family Business; Restructuring; Financing and Loans; Ownership Stake; Business and Shareholder Relations; Indonesia; Singapore
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Villalonga, Belen, Raphael Amit, and Christopher Hartman. "Medco Energi Internasional." Harvard Business School Case 207-021, August 2006. (Revised February 2009.)
  • March 2011
  • Article

Institutional Demand Pressure and the Cost of Corporate Loans

By: Victoria Ivashina and Zheng Sun
Between 2001 and 2007, annual institutional funding in highly leveraged loans went up from $32 billion to $426 billion, accounting for nearly 70% of the jump in total syndicated loan issuance over the same period. Did the inflow of institutional funding in the... View Details
Keywords: Leveraged Buyouts; Financial Crisis; Credit; Debt Securities; Financing and Loans; Interest Rates; Investment
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Ivashina, Victoria, and Zheng Sun. "Institutional Demand Pressure and the Cost of Corporate Loans." Journal of Financial Economics 99, no. 3 (March 2011): 500–522.
  • April 2010 (Revised March 2011)
  • Case

The Auction for Travelport (A)

By: Andrei Hagiu and Misha Sanwal
A senior Blackstone director is deciding how aggressively to bid for Travelport, a travel distribution business containing several key services and platforms. Travelport's most important properties were Galileo, one of the top 3 global distribution systems (GDSs),... View Details
Keywords: Value Creation; Product Positioning; Cost vs Benefits; Private Equity; Leveraged Buyouts; Competitive Advantage; Auctions; Industry Structures; Travel Industry
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Hagiu, Andrei, and Misha Sanwal. "The Auction for Travelport (A)." Harvard Business School Case 710-474, April 2010. (Revised March 2011.)
  • 01 Oct 2001
  • Research & Ideas

How To Make Restructuring Work for Your Company

considered, including issuing tracking stock, doing a leveraged buyout, or repurchasing shares, would not have solved this underlying business problem. Chase Manhattan Bank and Chemical Bank used their merger as an opportunity to both... View Details
Keywords: by Stuart C. Gilson
  • 11 Jul 2006
  • First Look

First Look: July 11, 2006

and, eventually, through its decision to execute a management buyout to exit the public market. Explored at the corporate level is the tension between Edison's effort to generate profits and achieve excellent educational outcomes. Brief... View Details
Keywords: Sean Silverthorne
  • 05 Mar 2019
  • First Look

New Research and Ideas, March 5, 2019

forthcoming Journal of Financial and Quantitative Analysis Leverage and the Beta Anomaly By: Baker, Malcolm, Mathias F. Hoeyer, and Jeffrey Wurgler Abstract— The well-known weak empirical relationship between beta risk and the cost of... View Details
Keywords: Dina Gerdeman
  • July 2022 (Revised October 2024)
  • Case

3G Capital

By: Jo Tango and Alys Ferragamo
In June 2022, 3G Capital Co-Managing Partners Alex Behring and Daniel Schwartz were in a partners’ meeting. On the agenda were three potential investments. Code named “Alpha,” “Bravo,” and “Charlie” (real target companies that have been disguised), they were the... View Details
Keywords: Investment Decisions; Investment Funds; Investment Portfolio; Decision Choices and Conditions; Private Equity; Leveraged Buyouts
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Tango, Jo, and Alys Ferragamo. "3G Capital." Harvard Business School Case 823-010, July 2022. (Revised October 2024.)
  • December 2012 (Revised January 2015)
  • Technical Note

Early Career LBOs Using the Search Fund Model

By: Howard Stevenson, Michael Roberts and Jim Sharpe
The funded search model is one alternative for individuals who, at some point in their career, want to run their own companies. This note looks at the funded search, as a means to entrepreneurship through acquisition and describes the path to buy and run a business... View Details
Keywords: Search Funds; Search; Entrepreneurial Finance; Investor Behavior; Career Planning; Entrepreneurial Management; Fundraising; Negotiation; Entrepreneurship; Capital Structure; Borrowing and Debt; Personal Development and Career; Private Ownership; Acquisition; Finance; Leveraged Buyouts
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Stevenson, Howard, Michael Roberts, and Jim Sharpe. "Early Career LBOs Using the Search Fund Model." Harvard Business School Technical Note 813-119, December 2012. (Revised January 2015.)
  • October 2006 (Revised September 2014)
  • Case

Summit Partners - The FleetCor Investment (A)

By: Michael J. Roberts
Part of a 3-case series in which students get to see the unfolding of due diligence on private equity (buy out) deal. In this, the A case, the deal team has negotiated a letter of intent with FleetCor, a firm that operates a fuel payment network for vehicle fleets.... View Details
Keywords: Negotiation Preparation; Private Equity; Leveraged Buyouts; Investment; Negotiation Offer; Service Industry
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Roberts, Michael J. "Summit Partners - The FleetCor Investment (A)." Harvard Business School Case 807-033, October 2006. (Revised September 2014.)
  • August 2013 (Revised December 2014)
  • Case

Taking Dell Private

By: David J. Collis, David B. Yoffie and Matthew Shaffer
In July 2012, Michael Dell, CEO and founder of Dell, Inc., met with a representative of Silver Lake Partners to explore taking his company private. The company, which he had founded in his dorm room as a college freshman and which had made him the youngest Fortune 500... View Details
Keywords: Strategy; Going Private; The PC Market; Market For Corporate Control; Corporate Strategy; Leveraged Buyouts; Change Management; Private Equity; Market Entry and Exit; Private Ownership; Information Infrastructure; Applications and Software; Internet and the Web; Computer Industry; Technology Industry; United States
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Collis, David J., David B. Yoffie, and Matthew Shaffer. "Taking Dell Private." Harvard Business School Case 714-421, August 2013. (Revised December 2014.)
  • November 1989 (Revised December 1996)
  • Supplement

Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance

By: Michael C. Jensen
Describes the resolution of the default situation. Further examines the internal control mechanisms and distinct role of the board of directors of a typical LBO association. View Details
Keywords: Corporate Governance; Leveraged Buyouts; Rail Industry
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Jensen, Michael C. "Wisconsin Central Ltd. Railroad and Berkshire Partners (B): LBO Associations and Corporate Governance." Harvard Business School Supplement 190-070, November 1989. (Revised December 1996.)
  • August 2012 (Revised July 2015)
  • Background Note

A Note on Valuation in Private Equity

By: Paul A. Gompers
This note will provide an overview of valuation methodologies in private equity. View Details
Keywords: Valuation; Valuation Methodologies; Private Equity; Leveraged Buyouts
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Gompers, Paul A. "A Note on Valuation in Private Equity." Harvard Business School Background Note 213-034, August 2012. (Revised July 2015.)
  • February 2011 (Revised November 2011)
  • Supplement

Berkshire Partners: Bidding for Carter's (CW)

By: Malcolm P. Baker and David Lane
Supplemental data on comparable companies to Burger King including both public companies and similar transactions. View Details
Keywords: Leveraged Buyouts; Analytics and Data Science; Bids and Bidding; Financial Services Industry
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Baker, Malcolm P., and David Lane. "Berkshire Partners: Bidding for Carter's (CW)." Harvard Business School Spreadsheet Supplement 211-709, February 2011. (Revised November 2011.)
  • February 1996
  • Exercise

Free Cash Flow Valuation Problem Set

By: William A. Sahlman and Andrew S. Janower
Free cash flow valuation problems: 1) build a simple pro forma, 2) value a public company's stock, and 3) evaluate a proposed LBO. View Details
Keywords: Leveraged Buyouts; Cash Flow; Public Ownership; Problems and Challenges; Valuation
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Sahlman, William A., and Andrew S. Janower. "Free Cash Flow Valuation Problem Set." Harvard Business School Exercise 396-269, February 1996.
  • May 1983 (Revised May 2015)
  • Case

The Carlton Polish Company

By: William A. Sahlman
Students are asked to determine the fair market value of Carlton Polish Co. and decide if Mr. Carlton should buy out his partner's half for $25 million. Carlton's alternative is to sell his half for $25 million. Students must also evaluate a financing plan. View Details
Keywords: Value; Financing and Loans; Partners and Partnerships; Leveraged Buyouts; Fair Value Accounting
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Sahlman, William A. "The Carlton Polish Company." Harvard Business School Case 283-008, May 1983. (Revised May 2015.)
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