Case | HBS Case Collection | March 2002 (Revised June 2003)

MAC Development Corporation

by Richard G. Hamermesh and Colleen McCaffrey

Abstract

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.

Keywords: Risk Management; Taxation; Financial Instruments; Borrowing and Debt; Asset Pricing; Construction Industry; Chicago;

Citation:

Hamermesh, Richard G., and Colleen McCaffrey. "MAC Development Corporation." Harvard Business School Case 802-140, March 2002. (Revised June 2003.)