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The principals at Domeyard, a start-up high frequency trading (HFT) hedge fund based in Cambridge, faced a myriad of important decisions: which markets to trade on, how to raise capital, and from whom to raise capital. Many of these decisions were standard for start-ups, but some were unique to hedge funds-among them choosing the right fund structure, as well as how to raise capital for the management company versus raising capital to invest. Given the recent backlash against HFT, the question of whether they should delay any launch also loomed large.

The Off Grid Electric case focuses on the creation, growth, and financing of the company from 2011 through the middle of 2014. The three cofounders saw an opportunity to provide solar electricity to much of Africa through their solar-as-a-service solution, which they launched in Tanzania in 2012. The Off Grid Electric business model was very capital intensive, and the new venture had several risks from the perspective of investors: market, business model, human resources, technology, and exit. As such, CEO Xavier Helgesen needed to think strategically about how-and when-to raise money in order to grow the business. In addition, the executive team needed to be in agreement on the company's growth plan. Should Off Grid Electric focus on rapid growth? Should they emphasize generating cash? What would these choices imply for Off Grid Electric's financing needs? At the end of the case, Helgesen receives two term sheets for a potential Series D financing. One is from Zouk Capital, a financial investor, and another is from Solar City, a strategic investor who had previously invested in Off Grid Electric. Students are asked to evaluate the term sheets from Helgesen's perspective, as well as to analyze an investment in Off Grid Electric from the perspective of an investor.

On October 9, 2013, Jos. A. Bank Clothiers Inc., a large U.S. retailer of men's tailored and casual clothing, footwear and accessories, made a hostile offer to buy its larger rival Men’s Wearhouse. The latter made a counter-offer on January 6, 2014 in what is known as a Pac-man defence — the prey turned predator. Jos. A. Bank responded by adopting a poison pill, announcing the planned acquisition of Eddie Bauer, an outdoor apparel retailer. What started out as a simple offer had turned into a contest with multiple counter-offers and the deployment of several takeover defences. How should Eminence Capital, a New York-based hedge fund and the largest shareholder in both firms, react? How should each firm respond to the latest offer on their respective tables?

On October 9, 2013, JoS. A. Bank Clothiers Inc., a large U.S. retailer of men's tailored and casual clothing, footwear and accessories, made a hostile offer to buy its larger rival Men's Wearhouse. The latter made a counter-offer on January 6, 2014 in what is known as a Pac-man defence - the prey turned predator. JoS. A. Bank responded by adopting a poison pill, announcing the planned acquisition of Eddie Bauer, an outdoor apparel retailer. What started out as a simple offer had turned into a contest with multiple counter-offers and the deployment of several takeover defences. How should Eminence Capital, a New York-based hedge fund and the largest shareholder in both firms, react? How should each firm respond to the latest offer on it respective table?

Student spreadsheet for case W15079.

In August 2013, an intern at Slatestone Group, an Arizona-based boutique investment bank, was working on a targeted sell-side deal. Paterson Publishing, a Fortune 200 company, had expressed interest in acquiring Slatestone's client Bluntly Media Holdings, a private direct marketing agency. The intern was assigned to help prepare the deal marketing material and assist with the valuation assessment of Bluntly Media. He needed to use a variety of valuation methods and propose a strategy that could assist Bluntly Media in attaining a higher price.

Student spreadsheet for W14730.

In August 2013, an intern at Slatestone Group, an Arizona-based boutique investment bank, was working on a targeted sell-side deal. Paterson Publishing, a Fortune 200 company, had expressed interest in acquiring Slatestone’s client Bluntly Media Holdings, a private direct marketing agency. The intern was assigned to help prepare the deal marketing material and assist with the valuation assessment of Bluntly Media. He needed to use a variety of valuation methods and propose a strategy that could assist Bluntly Media in attaining a higher price.

Spreadsheet supplement for case 214048.

An equity research analyst is preparing to attend a road show presentation by WH Group Limited, the world's largest pork company headquartered in Hong Kong, concerning its upcoming initial public offering. She is reviewing the preliminary prospectus as well as other publicly available background information on the company and its two core subsidiaries, Shuanghui International Holdings Inc. and Smithfield Foods Inc., whose recent acquisition was the largest by a Chinese company of a U.S. firm. She wants to assess the prospects for the company as a whole and arrive at her own independent valuation to support a buy or no buy recommendation for her fund. Her analysis includes assessments of economic conditions and the pork industry in the United States and China and the perceived strengths and weaknesses of WH Group, including the issue of large bonuses to corporate executives and the benefits or risks of the recent acquisition.

This case presents a realistic situation in which a firm in financial distress attempts an out-of-court financial restructuring by means of a debt exchange. Pinewood Mobile Homes is a large manufacturer of prefabricated homes, producing one-story, ranch-style houses; two-story, single-section and Cape Cod modular homes; and townhomes, apartments and duplexes. The company has lost the ability to compete effectively in the market place because it borrowed and acquired aggressively prior to the housing market crash. In order to avoid filling for Chapter 11 bankruptcy, Pinewood Mobile Homes must receive consent form senior lenders, junior creditors, and shareholders for a comprehensive restructuring plan. This case is written for use in elective MBA courses in corporate restructuring or advanced corporate finance. It can also be used in upper-level undergraduate finance courses that cover financial restructuring and corporate valuation.

Spreadsheet supplement for case 915547.

On April 20, 2010, as BP p.l.c., the third-largest listed oil producer in the world, was preparing to report strong first quarter results, an explosion occurred on its drilling rig Deepwater Horizon, killing 11 workers and injuring 16 others. Over the next two days, the rig burned and sank, resulting in a massive offshore oil spill in the Gulf of Mexico. The spill was considered "the largest environmental disaster to hit the United States" and the largest accidental marine oil spill in history. The financial reporting implications of the accident and subsequent claims, especially the recognition and measurement of provisions and related expenses, and disclosure of contingent liabilities, were a major consideration for BP and its investors.

This case provides a comprehensive introduction to the basics of capital budgeting. It presents students with two distinct capital budgeting exercises revolving around the athletic footwear industry. The first exercise is about a running sneaker with a large capital outlay and a six-year project life. It contains many traditional project cash flows as well as a significant endorsement risk. The second exercise involves evaluating a hiking shoe project with a smaller initial investment in a more rapidly growing but unfamiliar market segment. The authors have used this case with audiences including sophomore undergraduates, MBAs, and seasoned executives. In the first two audiences, students build spreadsheet solutions from the assumptions provided; for executives, we often give them the completed analysis and focus more on interpretation of financial metrics and on qualitative discussion. We have also used one or both of the exercises as exam questions.

At the start of 2014, Joanne Hill was preparing to present at a conference focused on alternative investments for financial advisers. Exhibit 1 provides selected slides from the presentation. Hill wants to showcase how Hedge Replication ETF (HDG) provided an exposure to hedge funds at low fees, with full transparency and providing daily liquidity. But she had to overcome some resistance in the audience because most hedge fund strategies had underperformed the overall stock market in recent years. Could 2014 be a comeback year for hedge fund strategies?

Longbow Capital Partners is a value-oriented long/short hedge fund focused on stocks in the energy sector. In January 2011, Longbow invested in NiSource, a Fortune 500 company that owns a diverse portfolio of regulated energy businesses. In late 2014, Longbow was deciding whether or not to maintain its position in NiSource. To make this decision, students must perform a discounted dividend analysis to determine the fundamental value of NiSource's stock. Students are also asked to perform a sum-of-the-parts analysis to assess the implications of NiSource's recent proposal to pursue a tax-advantaged spin-off its pipeline business.

The chief executive officer (CEO) of a family business is considering options available to owners of the business to monetize their shareholdings. Since the shares in privately-owned firms are illiquid, the family members may have significant wealth on paper, but they do not have large amounts of cash available. The second generation looking at retiring would like to realize some of the value from the firm they have worked to build and, at the same time, coordinate that planning with the best interest and intent of the other, younger shareholders. The owners need to consider not only the alternatives available to monetize illiquid shareholdings for investors in private firms, but also how to value illiquid shares based on the CEO’s recommendations. The challenge facing the CEO, however, is reconciling the conflicting business ramifications involved in the process without compromising the company’s strategic vision and the interests of family members.

This case investigates the issues involved in a private equity (PE) firm's decision to invest in the debt of a distressed leveraged buyout. The analysis has been purposefully simplified to involve only two classes of outstanding debt, senior debt and junior debt, so that students do not need to have detailed knowledge of the bankruptcy process to complete the analysis. The main analytical task requires students to compute the expected internal rate of return for two debt-investment strategies. This case has been successfully taught in a second-year elective course covering entrepreneurial finance and PE, and in an undergraduate course on PE. The case is appropriate for use in classes on PE, debt restructuring, advanced corporate finance, or deal valuation.

This case investigates the issues involved in a private equity (PE) firm's decision to invest in the debt of a distressed leveraged buyout. The analysis has been purposefully simplified to involve only two classes of outstanding debt, senior debt and junior debt, so that students do not need to have detailed knowledge of the bankruptcy process to complete the analysis. The main analytical task requires students to compute the expected internal rate of return for two debt-investment strategies. This case has been successfully taught in a second-year elective course covering entrepreneurial finance and PE, and in an undergraduate course on PE. The case is appropriate for use in classes on PE, debt restructuring, advanced corporate finance, or deal valuation.