Case | HBS Case Collection | October 1987 (Revised July 1991)

Tiffany & Co.

by Samuel L. Hayes III

Abstract

This premier retail jewelry company was bought from its parent, Avon, by a group of investors led by its own management in 1984. The company was highly leveraged, financially, and had to scramble to meet the cash flow and earnings requirements laid down by its lenders. Management effected a turnaround and decided to "go public" to pay down its debt and provide further growth funds. Students must assess the company's relative appeal to investors and refine a pricing recommendation for the securities underwriting syndicate.

Keywords: Acquisition; Borrowing and Debt; Cash Flow; Price; Going Public; Apparel and Accessories Industry;

Citation:

Hayes, Samuel L., III. "Tiffany & Co." Harvard Business School Case 288-022, October 1987. (Revised July 1991.)