Case | HBS Case Collection | March 1992 (Revised June 1992)

Thermo Electron Corp.

by Carliss Y. Baldwin

Abstract

George Hatsopoulos, CEO at Thermo Electron Corp., is considering whether to issue shares in a subsidiary via an initial public offering (IPO). The company has developed an unusual corporate structure in which subsidiaries fund new ventures by raising debt and equity in the capital markets, rather than through the parent company.

Keywords: Financial Management; Business Subsidiaries; Resource Allocation; Valuation; Organizational Structure; Business Headquarters; Initial Public Offering; Capital Structure; Capital Markets; Financial Strategy; Corporate Finance; Semiconductor Industry; Technology Industry;

Citation:

Baldwin, Carliss Y. "Thermo Electron Corp." Harvard Business School Case 292-104, March 1992. (Revised June 1992.)