Case | HBS Case Collection | May 1985 (Revised October 2001)

Comdisco, Inc.

by Carliss Y. Baldwin and Rita J. Seymour

Abstract

Comdisco, the largest independent dealer and lessor of computers and peripheral equipment, needs financing in order to match its market's growth of 20-30% per year. The company has access to two types of risk capital, but there are substantial costs and risks associated with each. The case focuses on the formulation of a complex financial strategy to meet Comdisco's aggressive growth plans. Once the strategy is identified, the questions "Is it possible?" and "Can it be implemented?" lead naturally to a discussion of the company's appropriate role in its industry.

Keywords: Business or Company Management; Strategy; Cost vs Benefits; Capital Structure; Financing and Loans; Financial Strategy; Corporate Finance; Growth and Development Strategy; Computer Industry; Distribution Industry;

Citation:

Baldwin, Carliss Y., and Rita J. Seymour. "Comdisco, Inc." Harvard Business School Case 285-109, May 1985. (Revised October 2001.)