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This case examines the myriad of issues facing two entrepreneurs who use the search fund model to search for, purchase, and ultimately operate a home health care services company. The search fund is a proven investment vehicle through which a group of experienced investors support the efforts of aspiring entrepreneurs who wish to buy and run a small company, despite their lack of operating experience. After an arduous three-year search, Peter Landry, Paul Brooke, and a group of investors purchased SunWest Medical Services. However, shortly after the deal closed, Landry and Brooke realized that SunWest was a different company from the one they thought they had purchased. Among other things, the company was not as profitable and was shrinking rather than growing. Issues are tracked over an 11-year period. The case concludes with a review of ways an entrepreneur might best balance personal career interests with the financial interests of investors.

Frontier Adventure Racing is a relatively young company that is facing some significant financial issues. The company president, owner and organizer of Canada's most recognized series of adventure races (Raid the North), is passionate and knowledgeable about the sport of adventure racing. Also, as the captain of Canada's top adventure racing team, his profile has loaned credibility to his own company and has heightened media coverage of its races. The company has great products, a solid international reputation among adventure racers, and good name recognition in the field. Even so, the company is up against some serious financial hurdles, having made little or no profit four years in a row. The Sports Network and The Outdoor Life Network have offered two hours of television coverage for the company's next race and half of the ad spots during the show if Frontier Adventure Racing is willing to pay the production costs. This kind of coverage would boost the company's visibility, but where could the company come up with the funding? Already faced with the problem of finding new sponsors, a bill for sponsorship, and a need for TV production costs over and above the normal cash requirements, the president knows the situation is difficult at best, and wonders what possible options are available to him.

Cochin International Airport opened in 1999 to widespread acclaim as the first and only airport to be constructed and operated by a private company in India. By 2001 the airport was generating enough revenue to cover its operating costs, but not enough to service its debt or to pay dividends to its shareholders. The airport company was already in technical default to its lenders, and its Managing Director had to figure out quickly how to improve profits or to convince shareholders to make further large infusions of equity. This case is intended to support a discussion of the advantages and disadvantages of having private companies build and operate major infrastructure facilities, such as airports. It was developed for use in an executive program on the privatization and regulation of infrastructure and utilities, but it could also be used in Master's level courses on privatization, infrastructure, and industrial policy. HKS Case Number 1650.0

Deals with MAC Development's efforts to develop a 41-acre site near Chicago. Reviews two years of efforts and highlights the remaining issues of: 1) gaining town approval for development and tax reductions, 2) meeting the bank's debt covenants, including finding a buyer for the first lot, and 3) agreeing on a final purchase price with the seller. Includes color exhibits.

A practical guide to managing time. Reviews the major reasons why time is not effectively used.

Describes some of the difficulties of working with one's relatives in the family firm, especially with one's brother(s). Examines some of the reasons for the difficulties and proposes ways of dealing with them.

Todd Dagres, general partner of Battery Ventures, reflects on his firm's organization and it's effectiveness in one particular deal. One of the perennial challenges of venture capital is the scaling of the firm. Usually regarded as a craft industry, venture firms tend to have fewer than ten deal-makers. Battery has undertaken a particular approach to this problem, instituting a career path that begins at a very low level, progressing to general partner. Examining Battery making a deal demonstrates the advantages and disadvantages of this structure.

Identifies many of the legal issues likely to arise in the course of starting and growing a company. Suggests strategies not only for ensuring compliance with the law but also for using the law and the legal system to increase predictability, maximize value, marshal resources, and manage risk. Explains why entrepreneurs and managers cannot just rely on lawyers to deal with the legal aspects of business and offers ways to manage legal risk and handle legal disputes. Also describes the relevance of a variety of laws to managers and entrepreneurs, including intellectual property, securities regulation, taxes, contracts, employment, business organization, product liability, environment, and alternative dispute resolution.

Casuarinas has developed a very successful elementary, now secondary, school based on excellence in teaching, service, and multilingual education. Peru lacks similar high-quality post-secondary institutions. This case focuses on the potential entry of Casuarinas into the post-secondary educational market.

Steve Papa, CEO of Endeca Technologies, must decide among two term sheets raising the same amount of badly needed money for his young software company. One deal is led by insiders and, is offered at a lower price. It continues a board that has worked very well and shares a common vision. It also is likely to involve a very important potential customer. The second offer comes from a group with which Papa does not have history. Although it carries a higher price, it will change the board structure and also requires that the closing be delayed a week, from September 7, 2001, to September 14. The company has cash only into October so, if anything goes wrong, Papa is unlikely to be able to arrange alternate financing. Discusses which option he should accept.

Bo Feng, cofounder and principal in Chengwei Ventures, one of the first sovereign venture capital firms in China, is trying to decide on the proper business model for hdt, the product of a merger between two portfolio companies. This case discusses the best way for the new company, which designs Web sites and provides customer relationship management and ad-serving software, to prosper in China's changing market.

Supplements the (A) case.

Describes the evolution of a start-up venture in the pathology lab segment of the clinical lab business. U.S. Labs tries a series of business models before running out of cash. The company is in dire need of financing, as its venture capital backers are refusing to put up more capital and its bank is calling its loan. Discusses how the CEO is willing to put up his own funding and still believes in the company's future.

Todd Haimes is the artistic director of the Roundabout, a nonprofit theatre. He must decide if he is willing to accept a large sponsorship from American Airlines and, in doing so, allow the airline to the name the Roundabout's new Broadway theatre. In making this decision, he must consider the perspective of multiple constituencies, including other senior managers, the board, customers, donors, and the press. He also needs to assess the financial alternatives that exist to American Airlines' sponsorship and assess their attractiveness for the Roundabout and the organization's various constituencies. Also provides the opportunity to explore the perspective of American Airlines and its choice to sponsor the Roundabout Theatre. Like the Roundabout, American must also weigh the potential costs and benefits before going ahead with the sponsorship.

Supplements the (A) case.

Supplements the (A) case.

Martin Smith, a recent HBS graduate, has just begun working with a leveraged buyout firm. His first assignment is to evaluate three different deals and make recommendations to the partners. As he studies the deals, he realizes that each has different merits and drawbacks and that his recommendation must take into account not only the specifics of each target company but also the situation of his firm. Also, he must consider the stage of his career and that of the senior partner.

The Liquid Gold cases are an adaptation of the original Calambra Olive Oil cases (UV3774 and UV3777). This version has been written to support a modified classroom experience. The cases describe the start-up of Calambra, a company built to sell a premier brand of olive oil. Frank Lockfeld, the founder, has to determine how much olive oil to make for the second year's production. Unfortunately, he has to make this decision before learning the results of the first year's sales. Thus, there is enormous uncertainty around the decision. The A case (UV3849) tells the start-up story and presents enough information for students to do a sensitivity analysis to decide which of the many uncertainties are most important. This leads to a discussion of tornado diagrams. The B case provides information on those critical uncertainties. This leads to a class on spreadsheet modeling and simulation modeling, searching for an optimal order quantity, adjusting for risk, etc. It also enables a discussion of a key general business issue: the difference between make-to-order and make-to-inventory businesses and the fundamental flaw in most business plans that leads to gross overestimates of potential profitability.

Mediagrif Interactive Technologies operates vertical business-to-business e-commerce marketplaces. The chief executive officer must decide whether to go forward with a previously delayed initial public offering. He must consider the effect of changing market conditions and how to value the company in order to determine the price range that would be used.

Describes the primary elements and defining characteristics of a company's business model from the perspective of an entrepreneur. Introduces several analytic techniques and provides illustrative examples of business models to support the analytic framework presented.