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In June 2017, Barry Callebaut, the largest B2B cocoa and chocolate company in the world renewed its revolving credit facility (RCF) introducing a novel feature suggested by the Dutch bank ING: the margin on the RCF would be tied to the company's ESG score from Sustainalytics, a leading sustainability agency, as a way to "make sustainability truly pay". A year later, Barry Callebaut has made progress towards the ambitious environmental and social goals of its Forever Chocolate programme, yet its ESG score has fallen almost to the level where the margin on the RCF will increase.

Spreadsheet supplement for case IN1675

In April 2020, Scott Einsenberg, the Head of Credit at the private equity firm Francisco Partners, is deciding whether to go ahead with extending a private lending agreement to Eventbrite, Inc. (NYSE: EB), a leading global event management and online ticketing technology platform that has been severely impacted by the cancellation of events in the face of the global coronavirus pandemic. These would be one of the first investments the recently raised Francisco Partners Credit Opportunity Fund ("FP Credit") would make. The case provide students with opportunities to explore private debt markets, the structure, strategy, and management of private credit funds, the evolution of credit and private credit in recent years, the structure and pricing of private credit agreements, the risk and return of private credit as an investment, and the analysis of a specific investing opportunity in this area.

Alice Anane is the member of a large, wealthy family that collectively operates a multi-pronged family business in Israel. Upon discovering partway into her pregnancy that the rapidly degenerative brain disease her father succumbed to now threatens her and potentially every member of her family, she must decide how to incorporate a comprehensive plan for handling genetic disease into her family's charter. Each aspect of the document must be carefully weighed, as the differing priorities must somehow come together into a system that works. With an uncertain clock ticking in the background, can she ensure that the measure passes with enough votes among her siblings and mother? Will she be able to ensure a lasting legacy for the family and its businesses that touch so many lives?

On October 27, 2017, the share price of McKesson Corporation and two other major US pharmaceutical distributors dropped by 7–12 per cent over only a few days. The stock price drop was fuelled by reports that Amazon Inc. had quietly acquired wholesales pharmacy licences in 12 US states and, a short time later, formed an independent venture with Berkshire Hathaway Inc. and JP Morgan Chase & Co. to improve the cost and quality of health care for the US employees of all three companies. These two notable events in the US pharmaceuticals market did not go unnoticed by a group of students enrolled in a value investing class, who wondered if it was possible for Amazon Inc. to disrupt the US health care industry, or if the market was overreacting to the two reports. Was McKesson Corporation’s future in the pharmaceutical distribution business in jeopardy, or was its stock suddenly in a favourable buy position?

Spreadsheet for product 8B20N017.

Spreadsheet to accompany product 9B20N017.

This case investigates the downfall of Ocean Park Corporation (Ocean Park or the park) from the perspective of financial statement analysis. Ocean Park's performance significantly declined from a surplus of HKD127.2mn in FY2013 to a severe deficit of HKD557.3mn in FY2019. This was mainly attributable to the shrinking revenue size and mounting difficulties in controlling the operating costs during this period. In 2020, Ocean Park was hard-hit by the coronavirus pandemic, which pushed it further to the verge of liquidation. After rounds of debates, the Hong Kong legislature eventually approved of a relief fund of HKD5.4bn in taxpayers' money. The case seeks to highlight the financial ratios and metrics commonly used in financial statement analysis, and their interpretations. It provides insights on Ocean Park's financial performance in terms of profitability, liquidity, solvency, and operational efficiency. Students will tackle practical questions regarding financial statement analysis of Ocean Park from FY 2013 to FY2019, and the financial impact of the relief fund by means of pro forma financial statements over the next few years.

Headquartered in Mumbai, India, FinTech startup Nearby Technologies has seen its flagship brand, PayNearby, rapidly flourish across most of its target market within just four years. The unprecedented success of its payment app, which allows users to access banking services and send money throughout the country from the comfort of their local grocer, has meant success not just for CEO Anand Kumar Bajaj. It has given the massively underbanked population a new lease on financial inclusion. However, as the company celebrates the milestone of covering six times as many locations as brick-and-mortar bank branches in the country, Bajaj looks on to the company's growing obstacles beyond 2020. PayNearby's wide spread means that the company lives and dies on a mere five basis points, and their competitors now number over 200. If Bajaj is to continue the success of his young company, and to continue serving the people who have come to depend on his service for their livelihoods, he will have to see that the thin "pizza-dough" strategy he has implemented can rise with a suite of new services. Failing to do so will spell the eventual demise of his vision. What will those services will be? How will Bajaj be able to secure his company's long-term niche against the hordes of competitors who are now rising at the hands of the same type of innovation his own company had employed?

This case follows Prakash Melwani (HBS MBA '86), CIO of Blackstone's Private Equity Group, and his teams' investment in the footwear company Crocs. Instead of a traditional secondary offering, Crocs opted for a unique deal structure by taking Blackstone's cash in a private investment in public equity (PIPE) deal. During the Blackstone investment, Melwani and his team drastically reworked Crocs' strategy. The case offers insight into the operational initiatives undertaken to revitalize the Crocs brand.

Spreadsheet for product 8B20N035.

Spreadsheet to accompany product 9B20N035.

The RealReal Inc. (Real), a San Francisco, California-based start-up engaged in the trade of used luxury goods, experienced significant growth in its revenue and customer base in fiscal year (FY) 2018, but it was yet to turn profitable after nine years in the business. The reported accumulated losses until the quarter ended March 2019 were US$280.98 million. On June 27, 2019, Real launched its initial public offering (IPO) at US$20 per share. Would investing in the company be worthwhile for investors? What parameters would realistically indicate the future prospects of an emerging growth company like Real?

Student spreadsheet to case W20776

The RealReal Inc. (Real), a San Francisco, California-based start-up engaged in the trade of used luxury goods, experienced significant growth in its revenue and customer base in fiscal year (FY) 2018, but it was yet to turn profitable after nine years in the business. The reported accumulated losses until the quarter ended March 2019 were US$280.98 million. On June 27, 2019, Real launched its initial public offering (IPO) at US$20 per share. Would investing in the company be worthwhile for investors? What parameters would realistically indicate the future prospects of an emerging growth company like Real?

In November 2019, Saudi Arabia's government officials and advisers had to decide whether or not to proceed with a plan to make the government-owned Saudi Arabian Oil Company (Aramco) a private company and list it on a stock exchange. At the time, Aramco was considered to be the most profitable company in the world. Therefore, its initial public offering would potentially be the largest in history. The company's market capitalization would dwarf those of global giants Apple Inc. and Google LLC. Saudi Aramco managed the world's largest oil reserves and had the world's second-lowest cost of oil extraction. However, there were concerns about the targeted valuation of US$2 trillion. There were also various other questions to be answered: Should the government-owned Aramco become a private company? Was the timing right to list the company on a stock exchange? What fraction of shares should be offered to investors? How should the largest initial public offering in history be priced?

Student spreadsheet to case W20766

In early 2019, the executive leadership of Chipotle Mexican Grill, Inc. (Chipotle), gathered to discuss the company's 2018 performance and align the company's capital structure policy and its growth aspirations going forward. Over the previous year, the company had enjoyed a lot of success. Its same-store sales had increased 6.1%, fueled by a 2% rise in traffic, and margins that had risen to nearly 19%, reaching gourmet restaurant levels. Chipotle's mission to deliver "Food with Integrity" resonated with its customers-primarily millennials, they valued quality over price and were constantly on the go with limited time to spare for eating. The company capitalized on healthy eating trends. Its recipes relied on just 53 ingredients that people could both recognize and pronounce and did not include any artificial colors or flavors. Chipotle successfully marketed its brand by utilizing digital channels and social media alongside traditional television events and sponsorships. Yet in the long term, the company still underperformed. Chipotle stock was $431 per share-about half of the $757 per share it had reached in August 2015. The company's roughly 7% margin was a far cry from its historical 18% levels. Only 83 new locations had opened in 2018, considerably fewer than the historical average of around 200 per year. Despite all the accomplishments over the last 12 months, the executive team continued to face pressure to increase the value Chipotle delivered to company shareholders.

Spreadsheet supplement for case UV8638.