Publications

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

July 2001
Case

Regal Cinemas LBO (B)

By: Malcolm S. Salter and Daniel Green

Supplements the (A) case. View Details

Keywords: Leveraged Buyouts; Corporate Governance; Failure

January 2023
Case

Clay Ridge Capital

By: Martin A. Sinozich and William R. Kerr

Kel Jackson, with the support of his young family, has been searching for a manufacturing business to purchase. After a long process, Kel had submitted a written offer to buy Sheetfab that matched his original conversation with the owner, but a broker Kel had never met... View Details

Keywords: Leveraged Buyouts; Small Business; Entrepreneurship; Manufacturing Industry

1996
Chapter

The LBO Association as a Relational Investing Regime: Clinical Evidence From Clayton, Dubilier & Rice, Inc.

By: Timothy A. Luehrman and W. Carl Kester

Keywords: Leveraged Buyouts; Alliances; Investment

December 2000
Case

SupplierMarket.com (A)

By: William A. Sahlman and Jared Stone

Describes a decision confronting the cofounders of a B2B Internet firm that focuses on the purchasing process for manufactured direct materials. The company has raised one round of capital from two prominent venture capital firms and must decide if it makes sense to... View Details

Keywords: Leveraged Buyouts; Customers; Decisions; Venture Capital; Internet

29 Jan 2008
First Look

First Look: January 29, 2008

http://www.hbs.edu/research/pdf/08-048.pdf The Private Equity Advantage: Leveraged Buyout Firms and Relationship Banking Authors:Victoria Ivashina and Anna Kovner Abstract This paper examines the impact of... View Details

Keywords: Martha Lagace

July 1986 (Revised March 1989)
Case

Jim Southern

By: Howard H. Stevenson

A recent MBA graduate has reached tentative agreement for an LBO of a forms-printing business with $43 million sales. At the eleventh hour, however, the seller has demanded that the buyer personally guarantee $4 million of accounts payable. View Details

Keywords: Agreements and Arrangements; Leveraged Buyouts; Accounting

2010
Supplement

Berkshire Partners: Bidding for Carter's, Spreadsheet Supplement

By: Malcolm Baker and James Quinn

Keywords: Auctions; Valuation; Leveraged Buyouts; Mergers and Acquisitions; Apparel and Accessories Industry; Retail Industry; Massachusetts

Read Now

1989
Chapter

LBOs and the Reemergence of Institutional Monitoring of Managers

By: Michael C. Jensen

Keywords: Leveraged Buyouts; Corporate Accountability; Corporate Governance; Management

31 Aug 2010
First Look

First Look: August 31

Furthermore, a third experiment shows that people tend to discount the wrongness of crossing ethical boundaries to hurt or help others when the action restores equity. The Private Equity Advantage: Leveraged View Details

Keywords: Sean Silverthorne

24 Jul 2000
Research & Ideas

Something Ventured, Something Gained: A European View of Venture Capital

the spotlight, providing American entrepreneurs with the resources they need to act on their ideas and dreams. In Apax chairman Ron Cohen's view, the European VC and private equity community is headed in the same direction, with added competition from View Details

Keywords: by James E. Aisner; Financial Services

April 2002
Case

Knoll Furniture: Going Public

By: Paul A. Gompers and Jon Asher Daniels

This case examines the decisions of John Lynch, president and CEO of Knoll Furniture, to go public in early 1997. Knoll went private in an LBO in 1996 and Warburg Pincus, the LBO sponsor, wants Lynch to take Knoll public. Lynch needs to weigh the positive and negative... View Details

Keywords: Leveraged Buyouts; Decisions; Initial Public Offering; Going Public; Privatization

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

2009
Simulation

Finance Simulation: Blackstone/Celanese (Facilitator's Guide)

By: Nabil N. El-Hage, Timothy A. Luehrman and Heide Diener Abelli

Keywords: Bids and Bidding; Finance; Mergers and Acquisitions; Valuation; Leveraged Buyouts; Negotiation

October 1991 (Revised November 1996)
Case

Gordon Cain and the Sterling Group (A)

By: Michael C. Jensen

A Houston-based LBO firm makes two petrochemical acquisitions that benefit from improved industry conditions and improved organizational performance. The LBOs generate huge increases in value, creating problems for managers, who have large, undiversified equity... View Details

Keywords: Organizational Change and Adaptation; Value Creation; Business Exit or Shutdown; Leveraged Buyouts; Chemical Industry; Houston