This case examines the use of advanced out-of-court restructuring techniques from the perspective of a company facing impending debt maturities and an over-indebted capital structure. The decade that followed the global financial crisis was marked by an increase in corporate debt with increasingly lenient debt pact packages. These more flexible arrangements allowed borrowers to engage …
Gone Rural employs 750 women in rural Swaziland communities to make handwoven baskets and other handmade items. The women are mostly grandmothers who take care of children who have been orphaned due to the high death rate from AIDS in the country. The company has a strong social mandate to improve the economic situation of …
Examines the evaluation of an opportunity to license an active ingredient before it is included in clinical trials. Describes Merck’s decision tree evaluation process. Provides the information necessary to evaluate a particular licensing opportunity, including the cost of the three stages of the review process, the revenue from the approval, and the likelihood of different …
In 2000, Eaton Corporation was a widely diversified industry group. But their strategy evolved to focus on “Power Management” and, more recently, “Smart Power,” the use of digitally assisted products and services to increase efficiency and reliability. To make this transition, Eaton had acquired more than 70 companies and sold another 50. Such active portfolio …
The case documents an offer to acquire Air Sahara by Jet Airways. To implement the merger, the two airlines formed a joint management group (JMG) and set March 2006 as the closing date of the agreement. The term was subsequently extended to June 2006. On June 20, 2006, one day before the term extension, Jet …
When the June 2016 referendum on Britain’s exit from the European Union or Brexit resulted in an exit vote, the managing director of the British subsidiary of Italian coffee machine manufacturer Molto Delizioso, SRL, was faced with a scenario that many international companies and their subsidiaries face. The UK subsidiary imported and paid for the …
In January 2017, the executive team of Bega Cheese, the Australian dairy company, considered an offer for the Mondelƒìz International grocery store in Australia and New Zealand (ANZ) that included several leading consumer brands, including Vegemite, the legendary variety. Australian. The team has to decide if they want to bid on the division and, if …
The case describes a capital budgeting dilemma for financing a new product at a technology company: the swimmer’s headset. Reviewing a series of emails and attachments, we learn that the protagonist, the newly hired finance manager responsible for presenting the decision to the board of directors, needs to create a capital planning assessment model that …
J. Crew was founded in 1947 as an affordable women’s retailer and launched a highly successful catalog in 1983. J. Crew’s stationary activities and catalog sales experienced healthy growth in the 1990s. Looking for a cash injection To grow and compete with larger catalog distributors, the company’s founders sold a majority stake in Texas Pacific …
UST, Inc. is a highly profitable smokeless tobacco company with low debt levels compared to other companies in the tobacco industry. The background to the case is the recent decision by the UST to significantly change its debt policy by borrowing $ 1 billion to fund its share buyback program.