The Investment Committee of New England Healthcare must decide how to invest three long-term investment pools: a long-term, endowment-type fund and two pension plans. In particular, the committee is evaluating whether the two pension funds--one is a "final salary" pension plan, the other a "cash balance" pension plan--should have special investment considerations due to the unique characteristics of these plans' liabilities.
Focuses on a graduating HBS MBA who has been working part-time with a Web-hosting firm in California. Discusses the question of which of several "business models" make the most sense for the company to pursue.
A very successful entrepreneur who has built a factoring business in Atlanta is trying to decide how to sell this business. The issues are how to value the company and the strategy of selling.
The largest state pension fund continues the evolution of its approach to corporate governance contemplating "relationship investing" and other new approaches.
Describes a second-year MBA's attempts to make money for a fledgling Web-hosting business. As the case ends, he must both sort out the company's business model and financing needs, as well as select from an array of financing and acquisition alternatives.
A small hydraulic-valve manufacturer attempts a second buyout in order to take out its current equity partners. A three-way deal must be negotiated between management, the new mezzanine lender, and the departing equity owners.