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This case examines the decisions of Seth Goldman and Barry Nalebuff, founders of Honest Tea. Honest Tea is a start-up in the ready-to-drink tea market. Goldman and Nalebuff must craft an expansion and financing strategy.

An individual is considering the development of a new restaurant. To make the decision, she uses NPV analysis to determine whether she should undertake the investment, and, if so, the optimal size of the investment.

This technical note provides a pedagogical overview of management communication for MBA education

Spreadsheet Supplement for case 201099

Spreadsheet Supplement for case 201097

Specialty chemical company Dixon must decide whether to acquire Collinsville, a business in a new segment, and how much to pay for it.

In late 1999, the Walt Disney Co. and the Hong Kong government agreed to develop Hong Kong Disneyland, a HK$28 (U.S.$3.6) billion theme park and resort complex planned to open in late 2005. As part of the total financing package, the sponsors decided to raise HK$3.3 billion of non-recourse bank loans for construction and working capital, and selected Chase Manhattan Bank to underwrite and syndicate these facilities. This case concerns the process by which Chase successfully competed to lead this transaction. The key questions facing Chase were whether to bid at all, how to bid, and how to structure the syndication to meet the borrower's needs, its own profit objectives, and the market's expectation for an attractively priced credit. Includes a generic section about the process, participants, and economics of syndicated lending for students who are unfamiliar with syndicated lending. This is part of a module on Financing Projects in the Elective Curriculum (EC) course Large-Scale Investment (LSI). Although written for a course on project finance, it can easily be modified for courses on capital markets or financial institutions.

Supplements the (A) case.

Spreadsheet Supplement for case 201072

Spreadsheet Supplement for case 201015

United Grain Growers Ltd. (UGG), a Canadian grain distributor, audited its exposure to a number of key risks, especially the impact of weather on grain volumes and operating income. Understanding these risks was crucial because the company was in the midst of a major modernization and diversification program. But although UGG already managed traditional risks through a variety of control processes, it was still faced with the problem of how to deal with the biggest risk; the weather.

The account manager at the Confederation Bank was contemplating a loan request from Peak Roofing, a wholesale and retail distributor of roofing supplies. The funds would be used to add a new branch to its existing three Montreal sites. This was an opportunity to steal Peak Roofing's business from a competitor, but he knew he had to put together a careful analysis of the risks and opportunities to get the deal approved. To do so, he needed to size-up the business, create projected financial statements and structure a deal for both a term and operating loan.

The founders of an online medical supplies firm must negotiate with an established hospital distributor and a venture capital firm.

An embryonic online medical supplies firm must negotiate a second-round funding.

This case provides a brief overview of valuation for owners of closely held companies. The focus is on a comparable transactions approach, although rules of thumb and discounted cash flow are mentioned. Earnings multiples and their drivers are discussed. It uses company example and transaction data on private deals as an exercise in screening for comparable companies and valuation based on multiples. It includes a three-page bibliography with references to further sources on valuation methods, private transaction data, financial databases for company screening, and professional advisors from appraisal and valuation communities.

Spreadsheet Supplement for case 201060.

This case examines a proposed $2 billion asset-backed securitization offering that is to be supported by Formula One's television broadcasting rights. The case is written from the perspective of Steve Din, executive director of Securitization for Morgan Stanley Dean Witter, who is responsible for placing the securities in September 1998. The proposed Eurobond issuance for Formula One (F1) follows a delayed initial public offering (IPO) in 1997 that failed to materialize owing to disputes with the Formula One teams. In the wake of the delayed IPO, Morgan Stanley Dean Witter replaced Salomon Brothers as the adviser to Bernie Ecclestone, the eccentric billionaire owner of the F1 trademarks, and became the lead manager for the $2 billion structured finance placement meant to bridge Formula One to an eventual IPO. Students are asked to recommend a course of action to meet the challenges of marketing the new issue. The case is designed for use in finance electives focusing on financing methods, investment banking, securitization, or other advanced topics in corporate finance.

The largest state pension fund continues the evolution of its approach to corporate governance contemplating "relationship investing" and other new approaches.

Apax Partners is considering a complex buyout of a semiconductor manufacturer. The firms must assess in a compressed timeframe the complex technological, financial, and operational risks that the proposed transaction poses.