Case | HBS Case Collection | February 2006 (Revised June 2007)

Brazos Partners and Cheddar's Inc.

by G. Felda Hardymon, Josh Lerner and Ann Leamon

Abstract

Randall Fojtasek, a partner at Brazos Private Equity Partners, must decide whether to invest more money in Cheddar's restaurant chain, which the firm invested in 10 months earlier. The incremental investment would fund a real estate subsidiary that would own the property on which Cheddar's built its stores, rather than its traditional approach of sale and leaseback. As he considers the issue, Fojtasek must decide how to price the new stock, how to structure the deal to limit his firm's dilution, and how to manage the personality issues involved.

Keywords: Negotiation Deal; Price; Partners and Partnerships; Management; Investment; Leadership; Business Subsidiaries; Stocks;

Citation:

Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Brazos Partners and Cheddar's Inc." Harvard Business School Case 806-069, February 2006. (Revised June 2007.)