After completing a successful two-year pilot, the Los Angeles Cleantech Incubator (LACI) was ready to launch its inaugural Debt Fund. The goal was to capitalize companies solving the greatest challenges related to climate change across three priority spaces in cleantech: transportation, clean energy, and sustainable cities. Spearheading the effort was Alex Mitchell, senior Vice President of Unlocking Innovation through the empowerment of start-ups-one of the three pillars of the organization's theory of change-in addition to Market Transformation through partnerships and pilots, and Enhancing Community through workforce development and programs. For over a decade, LACI had worked with nearly 300 start-ups through its incubator program to help sustainable start-ups, particularly those founded by and serving underrepresented individuals and communities, gain access to capital and scale their businesses. The Debt Fund would draw heavily on LACI's expertise and existing portfolio to provide loans with interest rates at or below market rates to companies that had achieved market traction but did not have the cash flow required to qualify for traditional loans. Specifically, the Debt Fund would focus on capitalizing minorities who were disproportionately affected by the cost and lack of access to equity funding. As its incubator program portfolio was nearly 33 percent women and 33 percent underrepresented founders of color, Mitchell needed a plan for preventing biases from imbuing the lending process at LACI while staying true to the organization's social mission of building a more sustainable and equitable ecosystem. In addition, while LACI had developed an impact framework for the incubator program that not only aligned with portfolio companies but underscored the importance of start-up engagement in the process, he struggled with how best to do the same with the Debt Fund. Finally, LACI would be partnering with other cleantech start-ups ("incubator partners") in the
In 2016, Stephen M. Liberatore, CFA, lead portfolio manager for and head of Nuveen's impact fixed income strategies, received a phone call from the World Bank. The call was not unusual; in fact, Nuveen had collaborated with the World Bank in the past as lead investor on a new type of Green Bond for the World Bank's private sector arm, the International Finance Corporation (IFC). While Green Bonds had been in existence for nearly a decade, the IFC Forest Bond was the first government-related credit focused on channeling private funds toward forest protections. The call that day, however, centered around an entirely new concept-a Blue Bond. Like most fixed income products, Blue Bonds were a debt instrument providing capital to issuers who repaid the debt with interest over time; however, the use of proceeds was earmarked for marine projects and ocean conservation. While the Nuveen team was familiar with and open to the more esoteric transactions presented by the World Bank, they had a series of challenging tasks ahead of them. First and somewhat simultaneously, they had to assess the security on a total return basis incorporating, among other assessments, fundamental credit analysis, an evaluation of terms, liquidity analysis, and relative value analysis, while ensuring that the investment adhered to their impact framework. This included not only direct support of measurable social and environmental impact but an emphasis on competitive, risk-adjusted return potential. This was particularly challenging given that the issuance was the first of its kind and comparable securities did not exist. Additionally, measures of impact remained immature as this was an inaugural transaction, so determining impact targets was not feasible. The team also had to determine the size of their commitment. While they could have funded the entire deal, they wondered if it made more sense to incorporate other impact investors. Finally, the team had to ensure that that the investment and
Set in September 2021, the case traces the digital transformation of FoodXervices Inc, a Singapore SME operating in the food distribution industry. The case essays the challenges faced by Nichol as a leader helming the digital transformation and how the transformation helped the company redefine its value proposition to the stakeholders. To customers, it pivoted from being a distributor to a solution provider; to the labour market, it had become a foodtech company attracting savvy university graduates as employees; to the F&B community, it had become an incubator fostering innovations. However, Nichol wanted more value to justify the company's investment in digital technology and futuristic application. In addition, she wanted the technology to improve the business metrics by improving sales and margins.
Antigal is an Argentinian winery with an integrated business model including vineyards, wine production, and distribution. Antigal is owned by the Cartoni family. Virgilio Cartoni entered Antigal as a minority shareholder in 2007, and in 2016 he and his wife Ana Maria took full control of the winery. Antigal consists of three companies. Virgilio and Ana Maria have four children: Stefano, Francesco, Alessandra, and Antonella. Since 2016, the couple each own 20% of the vehicle ROCKY, parent to two companies of Antigal, and the four children own 15% each. Virgilio and Ana Maria also own 50% each of the vehicle BACO, parent to the third company of Antigal. In mid-2018, Antigal became a multi-generational family-managed firm with Stefano, Alessandra, and Francesco working as company managers. Francesco, Virgilio, and Ana Maria's second-oldest son started working for a Chilean producer and exporter of wines following his graduation from university, and he soon realized that the future of the wine business was in China. Consequently, in 2016 he moved to China to work for the Chilean company there. In 2018 Francesco resigned from the job to start a full-time MBA program and begin to build relationships for his family business. Francesco, along with his brother and sister, has a vision to bring Antigal to the next level. There are many challenges ahead for the company to overcome: How to structure the family business governance? How to expand the business and increase the enterprise value of the firm? How and how much could China contribute to it?
At the end of 2018, Francesco Cartoni was concluding his first MBA term when he decided to start working as an executive assistant for his family company, Antigal Winery (Antigal). Antigal encompassed three companies. Two were based in Mendoza (Argentina): Cepas del Sur S.A., which owned the vineyards, and Botega Antigal S.A., which performed the wine production. The third company, Cork Alliance Inc., was a wine wholesaler and importer/distributor based in Miami, Florida (US), that owned a special license to import alcohol. In past years this company structure allowed Antigal to achieve a wide distribution in the US and gain higher profit margins. However, after Francesco joined the company and decided to expand distribution in China, Antigal's sales started to grow significantly in Asia as well. Francesco wanted Antigal to have an even greater presence in China, but once he joined the company, he wanted first to have a clear idea about the value of Antigal. Francesco and his siblings spent the following months collecting any relevant information, and with the help of his accounting professor, they started to make an accurate company evaluation. To provide a comprehensive view of Antigal, this case study analyzes the company's past performance. By using financial ratios, common size analysis and trend analysis are performed. Then, to evaluate the company value of Antigal, two evaluation methodologies are applied: (i) Multiples and (ii) Discount Cash Flow (DCF). The case study also shows the limits of these two techniques and proposes alternative methods. In evaluating the company, many issues are considered: What is the best way to evaluate Antigal, which encompasses companies located in different countries? What is the best method to account for the high inflation rate in Argentina? How could global economic trends, such as the burst of the COVID-19 pandemic, and wine industry trends, impact Antigal's future growth? Antigal recorded stable sales in the
The case focuses on a family feud that started with a property dispute and became public news in 2017. Gautam Singhania (chairman and managing director, MD, of Raymond Limited, India) and his father, Vijaypat Singhania, are involved in the dispute. The case narrates both sides of the story. It provides an opportunity to discuss succession management, as well as "family feuds", their reasons and their repercussions on a family business. The case offers interesting insights into the overlap of family, business and ownership dimensions in a family business. The case ends with the speculation of whether such disputes could ever be settled.
ReMaterials was started in 2012 by Hasit Ganatra, when he realised the potential of an alternate product that could cater to the current needs of people living in slums. Slums are characterised by inadequate facilities, one of which is durable housing. Ganatra observed that metal sheets were the most commonly used roofing material in slums and the household had to adjust with leaky roofs in monsoons, high temperatures in summer and very little ventilation throughout the year. The residents of such houses were unable to pay for a concrete roof which was the only other option available in the market. Instead, they found it more affordable to undertake yearly repairs. Ganatra felt the need for an alternate roofing solution keeping affordability in mind. To achieve this, he experimented with industrial and agricultural waste for almost a year and came up with a roofing panel made from waste cardboard, which he called 'Modroof.' The price of Modroof is almost half that of the concrete roof and it can last for about 20 years. In 2015, ReMaterials partnered with microfinance institutions, which offered housing loans for the underprivileged, to boost sales. In the beginning of 2017, ReMaterials aimed to achieve 500 installations by the year end to become profitable, but it was able to complete only 100 installations by the end of December 2017. Envisaged as a social enterprise, the dilemma before Ganatra was how to go about making ReMaterials profitable while keeping specific core areas in sight. There were multiple options available to him but he did not want to compromise on his vision or lose the freedom to experiment.
Lionheart Agrotech Limited, the holding company of Lionheart Farms is developing a large-scale sustainable hybrid coconut plantation with integrated processing and manufacturing capacities in the Philippines. The case describes the idea of the founders, their journey, the challenges they met and how they solved them. The case explores the key challenges and principal constraints that the company faced - and continues to face - during the development and execution of its sustainable agricultural project.
Lionheart Agrotech Limited, the holding company of Lionheart Farms is developing a large-scale sustainable hybrid coconut plantation with integrated processing and manufacturing capacities in the Philippines. The case describes the idea of the founders, their journey, the challenges they met and how they solved them. The case explores the key challenges and principal constraints that the company faced - and continues to face - during the development and execution of its sustainable agricultural project.
Schneider Electric is a multinational company providing energy management and automation. The case briefly outlines the company's history and describes the progressive integration of sustainability efforts into its overall strategy. This 20-year journey culminates in 2021 when Corporate Knights ranked Schneider Electric No. 1 worldwide for its sustainability performance. The protagonist, Gilles Vermot Desroches, who spearheaded the effort, looks back at how this remarkable achievement came about and how he is now confronted with the difficult task of imagining the company's next steps.
Orsières (Valais, Switzerland) April 2020. Opaline, an original juice production company with high social and environmental standards had begun in 2010. It took founder Sofia de Meyer over 10 years to build a responsible and impactful company aligned with her own aspirations, not just a lifestyle venture but one that would capitalize on her deeply rooted values, shared with many in the valley. Opaline was her experiment to prove to the world that a different type of capitalism was possible, one that put human and environmental aspects where they belonged - at the epicenter of a business revolution. De Meyer had regularly been asked in interviews why Opaline was not trying to grow faster, rather than ensuring that its existing suppliers and distributors developed alongside the company. She always replied by drawing an analogy with a growing forest, in which no tree stood much higher than the others or else it would fall, alone, with the next storm. The analogy proved robust but now a more violent storm - a global pandemic - was brewing that was hurting everyone at once. What would it mean for all the projects the team had set out for 2020? And more fundamentally, could Opaline weather this storm as it had already done several times thanks to its strong ecosystem of partners? Would it pay the price for not having extended its roots deep enough when it could?
Orsières (Valais, Switzerland) April 2020. Opaline, an original juice production company with high social and environmental standards had begun in 2010. It took founder Sofia de Meyer over 10 years to build a responsible and impactful company aligned with her own aspirations, not just a lifestyle venture but one that would capitalize on her deeply rooted values, shared with many in the valley. Opaline was her experiment to prove to the world that a different type of capitalism was possible, one that put human and environmental aspects where they belonged - at the epicenter of a business revolution. De Meyer had regularly been asked in interviews why Opaline was not trying to grow faster, rather than ensuring that its existing suppliers and distributors developed alongside the company. She always replied by drawing an analogy with a growing forest, in which no tree stood much higher than the others or else it would fall, alone, with the next storm. The analogy proved robust but now a more violent storm - a global pandemic - was brewing that was hurting everyone at once. What would it mean for all the projects the team had set out for 2020? And more fundamentally, could Opaline weather this storm as it had already done several times thanks to its strong ecosystem of partners? Would it pay the price for not having extended its roots deep enough when it could?
In early 2020, Singapore Airlines Limited (Singapore Airlines) faced severe liquidity issues as the global pandemic halted its flights and uncertainty loomed. Erstwhile massive cash reserves were quickly running out, and the airline’s executives pondered how to save the company from insolvency. Singapore Airlines’ majority shareholder, Temasek Holdings Limited, agreed to subscribe to a massive capital-raising exercise of up to S$15 billion via a proposed rights offer and mandatory convertible bonds (MCBs). Although minority shareholders were not convinced that the rights issue would be a good investment in such uncertain times, they had to decide whether to vote for it and whether to subscribe to the rights issue and MCBs.
In June 2021, Nayib Bukele, El Salvador's president, surprised the world with the announcement that the country would adopt bitcoin as legal tender, becoming the first nation to do so. Bitcoin was mostly used for trading and had one of the most volatile track records among assets. Yet, crypto adoption as a medium of exchange was starting to gain pace worldwide. Bukele claimed it would be a boon for financial inclusion, investment, innovation, and economic development. El Salvador's $27 billion economy suffered from persistently low growth, high public debt, and a strong dependence on remittances, which could potentially become cheaper and faster to access in bitcoins. The Bitcoin plan was met with both enthusiasm from Bitcoin supporters and skepticism from credit agencies and multilateral finance institutions, which believed it could bring macroeconomic instability to the local economy. Was bitcoin a viable currency for Salvadorans? Or, as some observers pointed out, was Bukele's plan another sign of weakened governance in his administration?
In the fall of 2013, the people of Ukraine disagreed passionately whether their country should intensify ties with the European Union or Russia. After President Yanukovych rejected the free trade agreement with the EU in November, thousands of Ukrainians peacefully protested. But the protest movement morphed into a violent, deadly confrontation in January, culminating in February in mass slaughter, an overthrow of government, foreign invasion, and international crisis. The four months that shook Ukraine is a case study on the interrelated problems of geopolitical struggle, politics of economic pacts and clash of regional economic blocks, post-imperial disintegration and trade, and identity and interdependence.
In June 2018, the government of Canada passed the Cannabis Act, paving the way for the legalization of recreational cannabis cultivation, acquisition, possession, and consumption on October 17 of that same year. This move set off a flurry of activity as existing companies, investment firms, and entrepreneurs sought to establish an initial position within the burgeoning industry. Mīhī Cannabis and its chief executive officer needed to navigate the complex patchwork of government regulations and other market factors to establish a launch strategy for the company that would differentiate it from the anticipated competition and support the normalization of the industry in the eyes of the communities in which it operated.
The leadership of Union Pacific Corporation (UPC), the largest public railroad transportation company in the United States, needed to decide whether the company should reestablish its share-buyback program. The freight recession of 2019 and the decline in shipping volumes caused by the start of the COVID-19 pandemic in 2020 had not been gentle on the freight industry overall, and UPC had been no exception. The company had been able to maintain its dividend policy, but suspended its share-repurchase program during the second half of 2020. By the end of 2020, UPC's management saw signs of V-shaped economic recovery. Was it time for UPC to reinstate the company's share-repurchase program? Dividends and share repurchases were important avenues through which UPC returned value to its shareholders. UPC's growth opportunities had become limited over the previous 50 years, and management had focused on efficiency, cost cutting, and generating cash flows that the company channeled back to shareholders. This case has been successfully taught at the University of Virginia Darden School of Business in the Enterprise Valuation module of the course ""Financial Management and Policies,"" which is an integral part of Darden's core curriculum for MBA students. The case integrates a variety of subjects including forecasting, financing, and investment analysis. Students are asked to calculate the implied enterprise value and share price of a corporation by building a DCF model.