William A. Sahlman

Dimitri V. D'Arbeloff - MBA Class of 1955 Professor of Business Administration
Senior Associate Dean for External Relations

William Sahlman is the Dimitri V. D'Arbeloff - Class of 1955 Professor of Business Administration at Harvard Business School. The d'Arbeloff Chair was established in 1986 to support teaching and research on the entrepreneurial process. 

Mr. Sahlman received an A.B. degree in Economics from Princeton University (1972), an M.B.A. from Harvard University (1975), and a Ph.D. in Business Economics (1982), also from Harvard.

His research focuses on the investment and financing decisions made in entrepreneurial ventures at all stages in their development. Mr. Sahlman has written numerous articles and two textbooks on topics including entrepreneurial management, venture capital, private equity, deal structuring, incentives, commercializing science, and the role of entrepreneurship in the global economy. 

In 1985, Mr. Sahlman introduced a new second-year elective course called Entrepreneurial Finance. That course has been taken by over 8,000 students since it was first offered. In 2000, Mr. Sahlman helped design and introduce The Entrepreneurial Manager, a required course in the First Year MBA curriculum.  Mr. Sahlman has published over 200 cases and notes for classroom use.

Mr. Sahlman is Senior Associate Dean for External Relations.  He was co-chair of the Entrepreneurial Management Unit from 1999 to 2002. From 1991 to 1999, he was Senior Associate Dean, Director of Publishing Activities, and chairman of the board for Harvard Business School Publishing Corporation. From 1990 to 1991, he was chairman of the Harvard University Advisory Committee on Shareholder Responsibility. He is a member of the board of directors of iWalk, Inc., which has developed an artificial foot and ankle.  He is chairman of the Advisory Committee for Harvard Stem Cell Science.  He is a member of the board of advisors of several private companies.  In 2011, Mr. Sahlman participated in The IPO Task Force, a private group focused on regulatory reform of the initial public offering process.  The Task Force published a report called: Rebuilding the IPO On-Ramp: Putting Emerging Growth Companies and the Job Market Back on the Road to Growth.

In April 2011, the National Venture Capital Association gave Mr. Sahlman The American Spirit Award, which was created in 1999 "to recognize individuals who have shown outstanding leadership by applying business skills, knowledge, expertise and resources to make a meaningful contribution to society."

Books

Journal Articles

  1. Reviving Entrepreneurship

    New enterprises don't exist in a vacuum: They rise or fall depending on myriad contextual factors, all of them interrelated, and all of them affected by government policy. U.S. lawmakers must carefully consider the effects of interventions in at least 12 areas, ranging from capital markets to tax treatment to intellectual property to health care. Their decisions could shore up-or further weaken-what has long been America's greatest economic asset.

    Keywords: Entrepreneurship; Government and Politics; Policy; Economy; Public Administration Industry; United States;

    Citation:

    Lerner, Josh, and William Sahlman. "Reviving Entrepreneurship." Harvard Business Review 90, no. 3 (March 2012). View Details
  2. Management and the Financial Crisis (We Have Met the Enemy and He Is Us...)

    The financial crisis of 2008-2009 has revealed that our broad model of corporate governance is broken, independent of the shortcomings in the regulatory system. Managers and boards of directors in scores of systemically important firms failed to protect employees, customers, or shareholders, and placed the global financial system at risk. I assert that the root cause of the crisis can be found in five related systems: incentives, risk management and control, accounting, human capital, and culture. The worst firms had lethal combinations of strong incentives, weak control and risk management, flawed internal and external accounting, low skill and/or low integrity people, and corrosive cultures. Piecemeal attempts to fix elements of corporate governance will fail. The problem, to illustrate, is not just the structure of compensation. Nor will increasing required capital prevent problems at companies with strong incentives and weak controls. I believe that we may need a new kind of external agency for systemically risky firms that would take a holistic look at the five systems to identify weaknesses, make recommendations to managers and boards, and set regulatory policies, including assessing charges for insuring against losses. Without such a comprehensive assessment and improvement plan, boards cannot do their jobs, and the system will remain as subject to calamitous events as it was before the crisis.

    Keywords: Financial Crisis; Corporate Governance; System; Risk Management; Human Capital; Policy; Employees; Customers; Business and Shareholder Relations; Accounting; Culture; Finance;

    Citation:

    Sahlman, William A. "Management and the Financial Crisis (We Have Met the Enemy and He Is Us...)." Economics, Management, and Financial Markets 5, no. 4 (December 2010): 11–53. View Details
  3. Capital Market Myopia

    Keywords: Capital; Markets;

    Citation:

    Sahlman, William A., and Howard H. Stevenson. "Capital Market Myopia." Journal of Business Venturing 1, no. 1 (winter 1985): 7–30. (Reprinted as Chap. 3 in The Entrepreneurial Venture, edited by William A. Sahlman, Howard H. Stevenson, Michael J. Roberts and Amar Bhide, 35-64. Boston: Harvard Business School Press, 1999.) View Details

Book Chapters

  1. Aspects of Financial Contracting in Venture Capital

    Keywords: Venture Capital; Contracts;

    Citation:

    Sahlman, William A. "Aspects of Financial Contracting in Venture Capital." Chap. 16 in The Entrepreneurial Venture. 2nd ed. by William A. Sahlman, Howard H. Stevenson, Michael J Roberts, and Amar V. Bhide, 304–325. Harvard Business School Press, 1999. (Originally published in Continental Bank Journal of Applied Corporate Finance 1, no. 2 (summer 1988): 23-36. Also reprinted in The New Corporate Finance: Where Theory Meets Practice, edited by D. Chew, 229. New York: McGraw-Hill, 1993. Part IV: 4.) View Details
  2. Importance of Entrepreneurship in Economic Development

    Keywords: Entrepreneurship; Development Economics;

    Citation:

    Stevenson, Howard H., and William A. Sahlman. "Importance of Entrepreneurship in Economic Development." Chap. 1 in Entrepreneurship, Intrapreneurship, and Venture Capital: The Foundations of Economic Renaissance, edited by Robert D. Hisrich, 3–26. Canada: Lexington Books, 1986. View Details

Working Papers

  1. Management and the Financial Crisis (We have met the enemy and he is us...)

    The financial crisis of 2008-9 has revealed that our broad model of corporate governance is broken, independent of the shortcomings in the regulatory system. Managers and boards of directors in scores of systemically important firms failed to protect employees, customers, or shareholders, and placed the global financial system at risk. I assert that the root cause of the crisis can be found in five related systems: incentives; risk management and control; accounting; human capital; and culture. The worst firms had lethal combinations of strong incentives, weak control and risk management, flawed internal and external accounting, low skill and/or low integrity people, and corrosive cultures. Piecemeal attempts to fix elements of corporate governance will fail. The problem, to illustrate, is not just the structure of compensation. Nor will increasing required capital prevent problems at companies with strong incentives and weak controls. I believe that we may need a new kind of external agency for systemically risky firms that would take a holistic look at the five systems to identify weaknesses, make recommendations to managers and boards, and set regulatory policies, including assessing charges for insuring against losses. Without such a comprehensive assessment and improvement plan, boards cannot do their jobs, and the system will remain as subject to calamitous events as it was before the crisis.

    Keywords: Accounting Audits; Financial Crisis; International Finance; Corporate Governance; Governing Rules, Regulations, and Reforms; Governing and Advisory Boards; Risk Management;

    Citation:

    Sahlman, William A. "Management and the Financial Crisis (We have met the enemy and he is us...)." Harvard Business School Working Paper, No. 10-033, October 2009. View Details

Cases and Teaching Materials

  1. Maricopa, Inc.: Finding the Right Treatment for Growth

    The founders of Maricopa, Inc., a startup that sold proprietary hair-care products directly to salons, were preparing a board presentation to address the young company's inability to meet financial projections. While the products had caught on with customers, the financial shortcomings raised some questions about the company's business plan. The company had gone through much of its cash and needed additional funding to continue operating.

    At the same time, two VC investors were deciding how to proceed with their investments in Maricopa. The larger VC firm questioned Maricopa's management's decisions and was hesitant to further fund the company. However the Maricopa investment was much more important to the smaller VC firm, and its representative on Maricopa's board worked hard to convince her counterpart from the larger firm that while the firm had struggled, it was a young startup with strong potential. Without the larger firm investing again in Maricopa, the business was at risk of going under.

    Keywords: Business Startups; Financial Condition; Venture Capital; Financial Strategy; Financing and Loans; Expansion; Planning; Fashion Industry; Iowa;

    Citation:

    Sahlman, William A., Thomas R. Eisenmann, Joseph B. Fuller, and Shikhar Ghosh. "Maricopa, Inc.: Finding the Right Treatment for Growth." Harvard Business School Case 314-065, January 2014. View Details
  2. Endeavor: Miami Heats Up

    Endeavor Global was a nonprofit that for 15 years had worked to nurture entrepreneurship in emerging markets by selecting local high-impact entrepreneurs for mentoring and aid in scaling up their businesses from committed local business leaders. In summer 2012, Endeavor received an invitation to replicate its model in Miami, Florida, and the Endeavor board was meeting to debate the value of such a move. At issue were questions of organizational mission and the relevance of Miami, as well as branding, funding, and focus. The invitation had come in the midst of a major expansion effort by Endeavor into new emerging markets and threatened to disrupt those efforts and tax a new hybrid funding model which Endeavor was implementing. Founder Linda Rottenberg, with the support of her board, must determine the implications of possibly opening in Miami on Endeavor's resources and mission. How could Rottenberg justify to overseas affiliates a choice to invest in a first-world city?

    Keywords: social enterprise; entrepreneurs; scaling; emerging market entrepreneurship; not for profit; entrepreneurial finance; mentoring; business networks; hybrid nonprofit funding; Mission and Purpose; Nonprofit Organizations; Social Entrepreneurship; Emerging Markets; Problems and Challenges; Finance; Miami;

    Citation:

    Sahlman, William A., Ramana Nanda, David Lane, and Lisa Mazzanti. "Endeavor: Miami Heats Up." Harvard Business School Case 814-043, November 2013. (Revised December 2013.) View Details
  3. Iora Health

    The Iora Health case looks at a new approach to the management and delivery of primary care. Instead of having a doctor, half a nurse and two accountants, Iora deploys a doctor, a nurse and several health coaches, all operating as an integrated team. Iora focuses on measuring and improving health. They are paid to manage a population rather than on a fee for service basis. They spend twice as much on primary care and hope to save over 20% on total care by improving health and obviating the need for acute interventions. The action question in the cases revolves around a proposed financing for the company at a time when several locations are up and running but the model has not been fully validated.

    Citation:

    Sahlman, William A., and Vineeta Vijayaraghavan. "Iora Health." Harvard Business School Case 814-030, February 2014. View Details
  4. Coupa

    The case describes the growth of Coupa, a software as a service platform for procurement / expense management. The issues in the case are around how fast to grow and how to finance that growth. The case includes a detailed financial model that will help students analyze the impact of hiring additional sales people and the consequent impact on sales and profits.

    Keywords: managing growth; growth management; entrepreneurship; sales force management; Growth Management; Entrepreneurship;

    Citation:

    Roberts, Michael J., and William Sahlman. "Coupa." Harvard Business School Case 813-114, June 2013. (Revised June 2014.) View Details
  5. Foro Energy (B)

    Foro Energy developed proprietary and patent-pending fiber-laser technologies that could disrupt existing processes and services for the exploration and production of oil and natural gas. These breakthrough laser technologies were protected by a strong intellectual property (IP) portfolio, which provided Foro with the flexibility to pursue a number of different business models. The market potential for oilfield applications was large, as global spending in the O&G E&P industry was expected to approach $600 billion in 2012.

    Keywords: Disruptive Technologies; innovation & entrepreneurship; development stage enterprises; entrepreneurial management; entrepreneurs; petroleum; Natural Gas; high technology; Energy; Entrepreneurship; Disruptive Innovation; Technological Innovation; Intellectual Property; Energy Industry;

    Citation:

    Lassiter, Joseph B., William A. Sahlman, and James McQuade. "Foro Energy (B)." Harvard Business School Supplement 812-163, June 2012. View Details
  6. A Simple Free Cash Flow Valuation Model

    Explores some of the issues involved in valuing cash flow streams. A simple model is presented that reveals the effect on value of changing assumptions about the appropriate discount rate, the level of profitability, the growth rate of sales, the asset intensity ratio, and the leverage ratio. Helps students address some of the following issues: 1) What is the definition of cash flow? 2) What effects do changes in the discount rate have on valuation? 3) How sensitive is value to changes in assumptions about the underlying characteristics of the cash flow stream? 4) How does growth affect value? 5) How does the use of leverage affect value? 6) What are price-to-earnings ratios? and 7) What factors affect price-to-earnings ratios?

    Keywords: Cash Flow; Valuation;

    Citation:

    Sahlman, William A. "A Simple Free Cash Flow Valuation Model." Harvard Business School Background Note 814-027, August 2013. View Details
  7. TerraPower

    John Gilleland, CEO of TerraPower, returned to his office after a lengthy meeting with potential investors. It was October 2012, and TerraPower was in the process of raising a $200M Series C round to finance the ongoing development of its next-generation nuclear reactor. Though early in the fundraising process, Gilleland noted that this most recent conversation was similar to conversations with other interested cleantech growth equity investors. The conversations circled around a common theme: "This is the biggest idea that's ever been presented at our partners' meeting. We love what you're doing, but it's not right for us as an investment." Outside of raising money from typical growth equity and infrastructure funds, Gilleland could partner with a government and/or form a joint venture with an existing nuclear power player. Reliance Industries as an investor in TerraPower could provide an entry point into the fast growing Indian market. At the same time, Gilleland and Gates had talked with China National Nuclear Corp. about a possible cooperation with TerraPower. Whom should Gilleland call next?

    Keywords: nuclear power; entrepreneurial finance; venture capital; Financing and Loans; Energy Industry; United States; China; India;

    Citation:

    Sahlman, William A., Ramana Nanda, Joseph B. Lassiter III, and James McQuade. "TerraPower." Harvard Business School Case 813-108, November 2012. (Revised December 2013.) View Details
  8. SecondMarket—Providing Liquidity for Shareholders of Privately Held iContact

    In 2011, SecondMarket was an online platform that facilitated secondary transactions of illiquid assets, including private company stock. This case explores reasons for the decline in small-cap IPOs in the United States from the 1990s to the 2000s and how the emergence of SecondMarket provided liquidity to privately held companies like iContact, an email and social marketing software-as-a-service (SaaS) company.

    Keywords: Business and Shareholder Relations;

    Citation:

    Sahlman, William A., Ramana Nanda, and James McQuade. "SecondMarket—Providing Liquidity for Shareholders of Privately Held iContact." Harvard Business School Case 812-072, November 2011. (Revised May 2012.) View Details
  9. Accretive Health

    Mary Tolan, CEO Accretive Health, examines whether to expand the company's operations in hospital revenue cycle management into the field of Total Cost of Care management.

    Keywords: Health Industry;

    Citation:

    Sahlman, William A., and Evan Richardson. "Accretive Health." Harvard Business School Case 812-061, November 2011. (Revised December 2013.) View Details
  10. Verengo Solar Plus!

    In the three years since Bishop and Button purchased Verengo in a leveraged buyout (LBO), the company had gone through dramatic changes. Initially a residential windows and insulation firm, after the economic recession of 2008 the company switched gears and began offering solar installations to local residential customers. Aided by favorable regulatory changes and a consumer financing partnership, Verengo's solar business took off and became the company's primary focus. By the end of 2010, Verengo had grown to $27 million in revenue and was the largest solar integrator in Southern California. In December 2010, Verengo raised $9.7 million in growth equity funding and was considering its options for future growth. Eager to expand to markets outside of Southern California, Bishop and Button knew that they had to carefully assess the firm's many opportunities and tightly manage its growth.

    Keywords: Venture Capital; Private Equity; Growth Management; Restructuring; Renewable Energy; Corporate Entrepreneurship; Corporate Finance; Product Development; Energy Industry; California;

    Citation:

    Sahlman, William A., Joseph B. Lassiter III, and Liz Kind. "Verengo Solar Plus!" Harvard Business School Case 812-049, October 2011. (Revised November 2011.) View Details
  11. CSN Stores

    In March 2011, CSN Stores is a collection of nearly 200 Internet retail websites, including Cookware.com, Strollers.com, and Luggage.com. Co-founders Niraj Shah and Steve Conine were considering making a major investment to build brand equity at the corporate level.

    Keywords: Internet; Web Sites; Online Technology; Distribution Channels; Investment; Brands and Branding; Equity; Corporate Entrepreneurship; Information Technology Industry; Retail Industry;

    Citation:

    Sahlman, William A., and Neil Tolaney. "CSN Stores." Harvard Business School Case 812-044, October 2011. View Details
  12. ScoreBig

    The founding team at ScoreBig, an event ticketing company, is on the verge of a public launch of their product. The company has made great progress in negotiating access to tickets, designing its interface, and building a proprietary architecture. For consumers, ScoreBig offered the opportunity to buy tickets at below face value. For event managers, ScoreBig helped solve the problem of filling empty seats and recruiting new customers in a way that did not harm other forms of ticket sales. ScoreBig has raised over $20 million in three rounds of financing.

    Keywords: Business Model; Marketing Strategy; Product Launch; Business Startups; Business Strategy; Corporate Finance; Entertainment and Recreation Industry;

    Citation:

    Sahlman, William A., Jeffrey Glass, and Evan W. Richardson. "ScoreBig." Harvard Business School Case 812-043, September 2011. View Details
  13. Khosla Ventures: Biofuels Gain Liquidity

    Samir Kaul, a Partner at Khosla Ventures, looked out his office window. It was late June, 2011, and like almost every day in Menlo Park, the sun was shining. Kaul was reflecting on what had been a very positive 10 months in the venture capital business. Over that span, he had helped three of his portfolio companies through IPOs, and helped Khosla Ventures raise its third fund, bringing the total outside capital raised by the group to more than $2.1B.

    Keywords: Venture Capital; Financial Strategy; Business or Company Management; Partners and Partnerships; Product Development; Investment Portfolio; Financial Services Industry;

    Citation:

    Lassiter, Joseph B., III, William A. Sahlman, Alison Berkley Wagonfeld, and Evan Richardson. "Khosla Ventures: Biofuels Gain Liquidity." Harvard Business School Case 812-035, September 2011. (Revised July 2012.) View Details
  14. The Venture Capital Problem Set

    This note consists of three valuation/analysis exercises often found in venture capital financing deals.

    Keywords: Venture Capital; Financing and Loans; Management Analysis, Tools, and Techniques; Negotiation Deal; Valuation;

    Citation:

    Sahlman, William, Evan W. Richardson, and James McQuade. "The Venture Capital Problem Set." Harvard Business School Background Note 812-039, September 2011. (Revised August 2012.) View Details
  15. WiTricity: Electricity cuts the cord

    Eric Giler, WiTricity CEO, must decide how to grow a company based around an untested but potentially ground-breaking technology for wireless electricity transmission.

    Keywords: Business Startups; Entrepreneurship; Technological Innovation; Growth and Development Strategy; Wireless Technology; Electronics Industry;

    Citation:

    Sahlman, William A., and Evan Wade Richardson. "WiTricity: Electricity cuts the cord." Harvard Business School Case 811-045, November 2010. (Revised April 2011.) View Details
  16. Chegg: Textbook Rental Takes Flight

    In late 2010, Silicon Valley-based Chegg, the leading online college textbook rental company, is scaling rapidly. The case recounts Chegg's history from its origins as a distant competitor to Craigslist in college classified listings through a pivot into textbook rental followed by a period of explosive growth. Resulting challenges in scaling warehouse operations, customer service, and information technology are described, along with efforts to professionalize sourcing/pricing and product management functions. The case closes with questions about how Chegg should respond to the pending transition from printed textbooks to electronic textbooks.

    Keywords: Change Management; Higher Education; Entrepreneurship; Books; Growth and Development Strategy; Growth Management; Service Operations; Renting or Rental; Online Technology; Education Industry; Service Industry; California;

    Citation:

    Eisenmann, Thomas R., William A. Sahlman, and Evan W. Richardson. "Chegg: Textbook Rental Takes Flight." Harvard Business School Case 811-077, February 2011. View Details
  17. Khosla Ventures: Biofuels Strategy

    By 2008, a number of the firm's early cleantech investments were showing promise, and the companies were starting to need significantly more money to create the massive scale required in the energy sector. As Khosla thought about the hundreds of millions of dollars required by his portfolio companies, he wondered how he should position his firm at this stage of development. Should Khosla develop a new fund that focused on later-stage investments? Should he seek investments from large industry players such as the major oil companies? Should he try raising money from the managers of the sovereign funds in countries such as Singapore, Kuwait, and China? How should the firm work with its strategic partners? Khosla knew that lining up enough later stage funding would be challenging, as the cleantech industry was still unproven for investors. Nevertheless, he was determined to continue his pattern of making bold investments in this emerging field.

    Keywords: entrepreneurial marketing; entrepreneurial finance; New Product Development; partnerships; entrepreneurial management; Venture Capital; Strategy; Partners and Partnerships; Renewable Energy; Entrepreneurship; Investment Funds; Environmental Sustainability; Product Development; Biotechnology Industry; Financial Services Industry;

    Citation:

    Lassiter, Joseph B., III, William A. Sahlman, and Alison Berkley Wagonfeld. "Khosla Ventures: Biofuels Strategy." Harvard Business School Case 809-004, September 2008. (Revised July 2012.) View Details
  18. Risk and Reward in Venture Capital

    This note describes the payoff structure of investment in individual venture capital–backed companies and in venture capital portfolios. Venture Capital investments are characterized by high failure rate (0ver 50%) and a small number of given successes (greater than 10% returns). As an asset, class, venture capital has produced high cyclical returns that mirror trends in capital markets and in markets for new technology. There is a large disparity in median and upper quantize performance. A small number of funds do well on a constant basis. Overall returns on venture capital have been low for the decade ending in 2009. ?????

    Keywords: Capital Markets; Venture Capital; Investment Return; Investment Portfolio; Data and Data Sets; Failure; Performance; Technology;

    Citation:

    Sahlman, William A. "Risk and Reward in Venture Capital." Harvard Business School Background Note 811-036, December 2010. View Details
  19. Gilt Groupe

    The case explores decisions faced by Gilt Groupe co-founders in 2009 regarding how rapidly to grow, which growth strategies to pursue and how much capital to raise.

    Keywords: Business Growth and Maturation; Business Strategy; Capital Budgeting; Corporate Finance;

    Citation:

    Roberts, Michael J., William A. Sahlman, and Tamara Obradov. "Gilt Groupe." Harvard Business School Case 811-049, November 2010. View Details
  20. The Changing Face of Angel Investing

    Angel investors Ram Shriram, Mike Maples, Eric Paley, James Geshweiler, and Jim Southern discuss their investment philosophies and the changing landscape of angel investing. Questions include: • How has angel investing changed in the last few years? • How do you evaluate a prospective investment's attractiveness? • How do you think about risk and reward in angel investing? • Is it possible for Angel funds to be too big?

    Keywords: Investment; Venture Capital; Investment Funds;

    Citation:

    Sahlman, William A., and Evan Richardson. "The Changing Face of Angel Investing." Harvard Business School Case 811-046, November 2010. View Details
  21. Bling Nation

    Bling Nation, a Palo Alto, CA startup, was founded in 2007 as a mobile payment service provider that bypassed industry participants such as Visa and MasterCard. Bling Nation partnered with local community banks and merchants in small towns. The banks provided their consumers with Bling Nation “tags”—microchip stickers that could be placed on any mobile phone device. The tags allowed users to make payments directly from their checking accounts and functioned similarly to a debit card. While Bling Nation had already raised $33 million, and its founders were confident of the market potential for mobile payments, they recognized the challenges they faced in scaling their current business model.

    Keywords: Culture;

    Citation:

    Sahlman, William A., and Liz Kind. "Bling Nation." Harvard Business School Case 811-029, November 2010. View Details
  22. Spudnik, Inc.

    This case describes the plan to finance a revolutionary new television set manufacturing business in late 2009. Yatin Mundkur, a venture capitalist at Artiman Ventures, has recruited a team of veteran eecutives from the optical disk drive business, to design large display televisions that use lasers to "paint" a picture on a phosphorous screen. Munkur had previously worked with Amit Jain (CEO) and Roger Hajjar (CTO). The company has made significant progress in creating its product but must raise additional capital to commercialize the technology at a time when a financial crisis has made it difficult to raise capital for any venture.

    Keywords: Technological Innovation; Technology; Venture Capital; Disruptive Innovation; Corporate Finance; Electronics Industry;

    Citation:

    Sahlman, William A., and Elizabeth A. Kind. "Spudnik, Inc." Harvard Business School Case 811-048, November 2010. View Details
  23. innocent

    This case describes a set of issues confronting the founders of innocent, a 10-year old beverage company that dominated the UK smoothie market. The team must decide how to proceed with expansion of the product line and outside the UK and Ireland. They must also decide how to finance the company, all within a challenging macroeconomic context.

    Keywords: Business or Company Management; Expansion; Capital Structure; Corporate Finance; Growth and Development Strategy; Food and Beverage Industry;

    Citation:

    Sahlman, William A., and Harry Wake. "innocent." Harvard Business School Case 811-037, October 2010. View Details
  24. NovoCure Ltd.

    Venture capitalist William Doyle must raise $35 million for a portfolio company with a promising, novel cancer therapy, just as global capital markets are imploding in the fall of 2008. NovoCure, Ltd., has developed an electrical-field-based therapy, called Tumor Treating fields, for the treatment of cancerous tumors. The therapy has shown significant efficacy with no side effects after five years of testing in human patients. Doyle believes NovoCure has the potential to become an important company with a major new cancer therapy platform but must complete pivotal (Phase III) clinical trials and receive FDA approval. Doyle's venture capital firm, WFD Ventures, has invested $25 million in three rounds to fund pilot clinical trials for glioblastoma and other non-small cell lung cancer, and the first pivotal clinical trial for glioblastoma. Additional financing is needed to proceed with the strategically important second pivotal trial. In the fall of 2008 Doyle was negotiating the final terms of an investment by two prominent hedge funds when the liquidity crisis caused the hedge funds to withdraw from the transaction. Dole must now reevaluate his options for securing the needed financing for this promising young company.

    Keywords: Financial Crisis; Entrepreneurship; Venture Capital; Investment; Health Care and Treatment; Health Testing and Trials; Technological Innovation; Financial Services Industry;

    Citation:

    Sahlman, William A., and Sarah Flaherty. "NovoCure Ltd." Harvard Business School Case 810-045, November 2009. (Revised August 2010.) View Details
  25. Distrobot Systems, Inc.

    Distrobot is a start-up that has developed a new system for warehouse automation. The company is trying to raise money to finance the launch of the product. The founder must decide how much capital to raise, from whom, and on what terms.

    Keywords: Financing and Loans; Product Launch; Business Startups; Business Strategy; Distribution Industry; Service Industry;

    Citation:

    Sahlman, William A. "Distrobot Systems, Inc." Harvard Business School Case 805-082, June 2005. (Revised August 2010.) View Details
  26. Hamilton Test Systems, Inc.

    The protagonists must decide whether to invest in an auto emissions testing company as the first investment in the leveraged buyout fund they recently formed. Issues of how to raise the needed equity capital and how to structure the acquisition are emphasized.

    Keywords: Venture Capital; Leveraged Buyouts; Environmental Sustainability; Investment; Service Industry; Auto Industry;

    Citation:

    Sahlman, William A., and Norman Klein. "Hamilton Test Systems, Inc." Harvard Business School Case 295-017, September 1994. (Revised May 2010.) View Details
  27. RightNow Technologies

    The founder and CEO of a CRM software start-up must decide between an attractive acquisition offer and the opportunity to go public. Discusses the growth of the company--including a lengthy discussion of entrepreneurial bootstrapping--as well as an aborted IPO attempt in 2000. The central question is whether the company will create more value by staying independent or by joining a larger organization.

    Keywords: Business Exit or Shutdown; Software; Going Public; Management Teams; Finance; Strategy; Value Creation; Entrepreneurship; Business Startups; Acquisition; Computer Industry;

    Citation:

    Sahlman, William A., and Dan Heath. "RightNow Technologies." Harvard Business School Case 805-032, November 2004. (Revised May 2010.) View Details
  28. Nantero

    This case describes a decision confronting the founder of Nantero, a company developing a new semiconductor technology. The company needs to raise additional venture capital. Potential investors have competing visions for the company, and its business model. Some investors want the company to license its technology to semiconductor companies. Others want the company to become a "lableless" semiconductor company producing and selling its own products. The question for the team at Nantero is, what model makes sense and which investor offers the most attractive terms?

    Keywords: Business Model; Decision Choices and Conditions; Venture Capital; Investment; Product Development; Production; Technology; Semiconductor Industry;

    Citation:

    Sahlman, William A., Dan Heath, and Caroline Perkins. "Nantero." Harvard Business School Case 809-031, August 2008. (Revised December 2009.) View Details
  29. Amazon.com (D)

    At the end of 1999, Amazon.com founder and CEO Jeff Bezos--just named Time Magazine's Man of the Year--ponders the next moves for his company. Having expanded into numerous categories in 1999, ranging from Z-shops to Auctions to E-cards as well as increasing the number of distribution sites to seven, Amazon.com is quickly transforming itself as an electronic retailer. But does Amazon.com's strategy make sense? Critics worry that Bezos may be stretching the Amazon.com brand too far instead of focusing on a few retail categories. Bezos sees the opportunity to dominate various retail categories online--leveraging off its base of 16.9 million customers--before the brick-and-mortar retailers do.

    Keywords: Growth and Development Strategy; Organizational Change and Adaptation; Competitive Advantage; Expansion; Online Technology; Retail Industry;

    Citation:

    Rayport, Jeffrey F., Dickson Louie, and William A. Sahlman. "Amazon.com (D)." Harvard Business School Case 901-022, February 2001. (Revised November 2009.) View Details
  30. (TN) Amazon.com (A), (B), (C), and (D)

    Teaching Note for (9-897-128), (9-898-084), (9-901-021), and (9-901-022). For book only.

    Keywords: Retail Industry; Web Services Industry;

    Citation:

    Rayport, Jeffrey F., Dickson Louie, and William A. Sahlman. "(TN) Amazon.com (A), (B), (C), and (D)." Harvard Business School Teaching Note 901-025, April 2001. (Revised November 2009.) View Details
  31. Nantucket Nectars: The Exit

    The founders of Nantucket Nectars are trying to decide whether and how to sell their company.

    Keywords: Mergers and Acquisitions; Business Exit or Shutdown; Decision Choices and Conditions; Auctions; Food and Beverage Industry; Massachusetts;

    Citation:

    Lassiter, Joseph B., III, William A. Sahlman, and Noam Wasserman. "Nantucket Nectars: The Exit." Harvard Business School Case 810-041, September 2009. (Revised February 2014.) View Details
  32. Blink: The European Air-Taxi Service

    This case describes a new venture that is about to launch a Pan-European air-taxi service in 2008.

    Keywords: Business Startups; Capital; Financing and Loans; Product Launch; Air Transportation Industry; Europe;

    Citation:

    Sahlman, William A., and Jackie Donnelly Russell. "Blink: The European Air-Taxi Service." Harvard Business School Case 809-058, October 2008. (Revised October 2009.) View Details
  33. A Method For Valuing High-Risk, Long-Term Investments: The "Venture Capital Method"

    Describes a method for valuing high-risk, long-term investments such as those confronting venture capitalists. The method entails forecasting a future value (e.g., five years from the present) and discounting that terminal value back to the present by applying a high discount rate (e.g., 50%). Provides an explanation of this method, including a detailed discussion of the determinants of the key factors ranging from the discount rate to the terminal value. The pedagogic objective is to make students aware of the issues involved in valuing such "futures" investments. A model is provided that further elucidates the determinants of value.

    Keywords: Forecasting and Prediction; Entrepreneurship; Venture Capital; Investment; Risk Management; Valuation;

    Citation:

    Sahlman, William A., and Daniel R Scherlis. A Method For Valuing High-Risk, Long-Term Investments: The "Venture Capital Method". Harvard Business School Background Note 288-006, July 1987. (Revised October 2009.) View Details
  34. ZINK Imaging: 'Zero Ink™'

    "ZINK Imaging" describes the issues confronting CEO Wendy Caswell as she uses a partnership model to commercialize ZINK's disruptive printing technology platform, ZINK Paper. The case focuses on the frameworks ZINK has used to decide which markets to target and which business partners to choose. Caswell contemplates changes to the partnership model in an effort to speed product introduction to manage the company's burn rate and reach profitability. The context for the case is the company's imminent need to raise an additional $25 million.

    Keywords: Entrepreneurship; Capital; Disruptive Innovation; Technological Innovation; Marketing Strategy; Partners and Partnerships; Horizontal Integration; Technology Industry;

    Citation:

    Sahlman, William A., and Sarah Flaherty. "ZINK Imaging: 'Zero Ink™'." Harvard Business School Case 810-050, September 2009. View Details
  35. Cutter & Buck (A)

    Only three short months into her new position as CEO of publicly traded golf apparel manufacturer Cutter & Buck, Fran Conley discovers accounting irregularities that call into question the reliability of this company's financial statements. Working closely with her board of directors, Conley must figure out what is really going on. She must also deal with the possibility of SEC sanctions, class action lawsuits, threat of NASDAQ delisting, loss of D&O insurance, departure of senior managers, and problems with access to credit. She is also trying to turn the company around after two years of poor performance.

    Keywords: Financial Statements; Crime and Corruption; Corporate Disclosure; Governing and Advisory Boards; Lawsuits and Litigation; Organizational Change and Adaptation; Going Public;

    Citation:

    Sahlman, William A., and Victoria Winston. "Cutter & Buck (A)." Harvard Business School Case 806-028, November 2005. (Revised July 2009.) View Details
  36. BzzAgent, Inc. - 2005

    Describes a set of financing issues confronting a rapidly growing company that uses "Word-of-Mouth" marketing techniques in promoting research, new products, or services. The company proposes to set the terms for a new round of venture capital it needs and to have venture capitalists bid for the right to invest on those terms by proving that they can add value to BzzAgent, Inc.

    Keywords: Venture Capital; Investment; Marketing Communications; Marketing Strategy; Value;

    Citation:

    Sahlman, William A., and Caroline Perkins. "BzzAgent, Inc. - 2005." Harvard Business School Case 807-057, September 2006. (Revised July 2009.) View Details
  37. MD Beauty, Inc.

    Describes some of the issues confronting the entrepreneurial team responsible for creating a highly successful natural beauty and skin care company. They are considering selling all or some portion of the company's stock.

    Keywords: Entrepreneurship; Stocks; Financial Strategy; Management Teams; Beauty and Cosmetics Industry;

    Citation:

    Sahlman, William A., and Elizabeth Kind. "MD Beauty, Inc." Harvard Business School Case 806-045, October 2005. (Revised July 2009.) View Details
  38. Beechwood Spouts (A)

    Charles Barker must decide whether to become an outside investor in a private round of financing for an early stage, high-growth-potential venture producing plastic pouring spouts for orange juice cartons. Barker must evaluate the opportunity, content, and deal to decide whether the deal makes sense for him, and whether he should recommend the investment to his clients.

    Keywords: Business Startups; Venture Capital; Financing and Loans; Investment;

    Citation:

    Sahlman, William A., and Andrew S. Janower. "Beechwood Spouts (A)." Harvard Business School Case 396-016, October 1995. (Revised July 2009.) View Details
  39. Basic Venture Capital Formula, The

    Briefly summarizes the process that venture capitalists use to analyze high-risk, long-term investments. Contains information on methods that can be used to calculate valuation, share price, percent ownership, implied valuation, dilution, and option pools.

    Keywords: Venture Capital; Risk Management; Mathematical Methods; Valuation;

    Citation:

    Sahlman, William A., and Matthew Willis. "Basic Venture Capital Formula, The." Harvard Business School Background Note 804-042, August 2003. (Revised May 2009.) View Details
  40. CCBN.com - 2002

    Describes some important issues confronting the management of a successful information company in 2002, competitive threat from a larger firm that is also a strategic investor. Management must decide how to respond to the.

    Keywords: Entrepreneurship; Investment; Management; Problems and Challenges; Competition;

    Citation:

    Sahlman, William A. "CCBN.com - 2002." Harvard Business School Case 804-059, September 2003. (Revised May 2009.) View Details
  41. Sue Whitman at MBB Financial

    This case describes some issues confronting the leader of a major investment bank. She is pleased with the financial performance of her firm but concerned about signs of a bubble in the market.

    Keywords: Financial Crisis; Investment Banking; Financial Condition; Performance Effectiveness; Performance Evaluation; Banking Industry; Financial Services Industry;

    Citation:

    Sahlman, William A. "Sue Whitman at MBB Financial." Harvard Business School Case 809-115, January 2009. View Details
  42. How Serial Entrepreneurs Build and Manage a Board of Directors in a Venture-Backed Start Up

    This case includes structured interviews with four serial entrepreneurs about the way in which they built and used their boards in each of their companies and what they have learned through that process. These entrepreneurs were asked similar questions, such as "How do you build a board of directors in a venture-backed start up?"; "What do you expect of the board and how do you ensure those expectations are met?"; "What are the most and least value-added board activities?"; "How do you manage the board?"; "How does board composition change over time?"; "What were your biggest surprises about boards?"; and "What advice would you give first-time entrepreneurs?"

    Keywords: Business Startups; Entrepreneurship; Corporate Governance; Governing and Advisory Boards;

    Citation:

    Roberts, Michael J., William A. Sahlman, and Sasha Novakovich. "How Serial Entrepreneurs Build and Manage a Board of Directors in a Venture-Backed Start Up." Harvard Business School Case 808-163, June 2008. (Revised July 2008.) View Details
  43. Texas Pacific Group--J. Crew

    Describes Texas Pacific Group's purchase and operation of J. Crew, the catalog and specialty clothing retailer. Highlights the issues involved in financing such a transaction, and then focuses on the operational challenges of turning around the business, and of TPG's intensive involvement in the running of the business. Details the improvements in the business, and then the retrenchment, leaving the business facing a significant debt payment coming due. TPG must decide whether to sell the business and get out "whole," or whether it can develop and execute a more successful strategy going forward.

    Keywords: Mergers and Acquisitions; Private Equity; Financing and Loans; Investment; Operations; Organizational Change and Adaptation; Apparel and Accessories Industry; Retail Industry;

    Citation:

    Roberts, Michael J., William A. Sahlman, and Lauren Barley. "Texas Pacific Group--J. Crew." Harvard Business School Case 808-017, August 2007. (Revised April 2008.) View Details
  44. The Harvard Stem Cell Institute

    Describes a set of issues confronting the leaders of the Harvard Stem Cell Institute, an innovative cross-university effort to accelerate scientific discovery and translation in the domain of stem cells. Covers a wide range of topics, including understanding how science research gets funded, how politics affect research, how universities approach intellectual property, how countries (and states) compete for talent, and how therapies are developed.

    Keywords: Talent and Talent Management; Higher Education; Entrepreneurship; Collaborative Innovation and Invention; Intellectual Property; Research and Development; Genetics; Biotechnology Industry; Health Industry; Massachusetts;

    Citation:

    Sahlman, William A. "The Harvard Stem Cell Institute." Harvard Business School Case 807-096, November 2006. (Revised March 2008.) View Details
  45. Prosper Marketplace, Inc.

    Describes a set of financial and strategic decisions confronting the founding management team of a new online financial services company. Prosper Marketplace is an internet-based market for individuals to borrow money from other individuals who wish to invest in such loans.

    Keywords: Business Startups; Entrepreneurship; Financial Strategy; Innovation and Invention; Management Teams; Financial Services Industry;

    Citation:

    Sahlman, William A., and Elizabeth Kind. "Prosper Marketplace, Inc." Harvard Business School Case 807-074, December 2006. (Revised March 2008.) View Details
  46. Zoots - Financing Growth (A)

    Traces the genesis and founding of Zoots, the largest chain of dry cleaning establishments in the U.S. Founded by some of the founders of the very successful Staples chain, the company raises a very large amount of capital without fully proving its business model, and by 2006 is in need of yet more funding. Pushes students to dissect the business model and current operations -- and their financial performance -- and figure out what went wrong initially, if the business model and operations are now on solid footing, and, assuming capital can be raised, whether it is better to take the "bird in the hand" of significant capital at an admittedly disappointing valuation, or wait for a strategic investor who would pay a higher price but will need significantly more time to complete due diligence.

    Keywords: Business Startups; Decision Choices and Conditions; Venture Capital; Financial Strategy; Investment Return; Growth and Development Strategy; Valuation; United States;

    Citation:

    Roberts, Michael J., William A. Sahlman, and Todd Krasnow. "Zoots - Financing Growth (A)." Harvard Business School Case 807-139, June 2007. (Revised March 2008.) View Details
  47. Pinnacle Ventures

    Describes a prospective "venture debt" loan to a new venture from the perspective of Patrick Lee, a principal at Pinnacle Ventures. Forces students to grapple with the nature of financial risk in the start-up firm and assess the prospective risks and returns to a lender to such a firm. To reach a perspective on these issues, students need to assess the existing pro forma cash flows of the venture backed firm, overlay the cash flow implications of a venture debt loan, and assess how much additional "runway" (months till cash runs out) the venture debt will provide. Students must also look at the prospective returns to the venture debt firm from the warrants and the option to invest in follow-on financings that is provided to Pinnacle as part of the loan. Thus, they must look at risk and return from the prospective of both parties. Also provides information on the returns to venture capital, venture debt, and other forms of private equity, and asks students to address the issue of what the risk and return in these various private equity asset classes has been and is likely to be.

    Keywords: Risk and Uncertainty; Venture Capital; Investment Return; Business Startups; Financial Services Industry;

    Citation:

    Roberts, Michael J., William A. Sahlman, and Elizabeth Kind. "Pinnacle Ventures." Harvard Business School Case 808-048, August 2007. (Revised February 2008.) View Details
  48. Motion Computing, Inc. -- 2004

    Scott Eckert, the co-founder and CEO of Motion Computing, must decide whether to raise additional capital to support growth. Motion manufactures and distributes Tablet PCs. If the company opts to raise money, it must decide on the source and terms of the financing.

    Keywords: Risk and Uncertainty; Financing and Loans; Financial Strategy; Manufacturing Industry; Computer Industry; United States;

    Citation:

    Sahlman, William A., and Caroline Perkins. "Motion Computing, Inc. -- 2004." Harvard Business School Case 806-068, November 2005. (Revised December 2007.) View Details
  49. Tickle

    Describes a set of decisions confronting the management team of a rapidly growing online psychological testing and social networking company. They can either sell the company to a large public company, raise another round of capital from a preeminent venture capital fund, or continue to grow using existing positive cash flow.

    Keywords: Decisions; Online Technology; Growth Management; Internet; Business Strategy; Corporate Finance;

    Citation:

    Sahlman, William A., and Dan Heath. "Tickle." Harvard Business School Case 807-100, November 2006. View Details
  50. Brontes Technologies -- 2005

    Describes a set of decisions confronting the founders of a company developing a new device for taking three-dimensional pictures of teeth in order to improve dental outcomes. The company needs more money and must choose between raising new equity capital from a venture capital firm, raising money from a strategic investor, or taking advantage of venture debt.

    Keywords: Borrowing and Debt; Business Startups; Medical Devices and Supplies Industry;

    Citation:

    Sahlman, William A., and Caroline Perkins. "Brontes Technologies -- 2005." Harvard Business School Case 807-101, November 2006. View Details
  51. Earthbound Farm

    Describes a set of decisions confronting the senior management of Earthbound Farm, the largest organic produce company in the world. Focuses on what to do with an East Coast distribution center that is losing money but may be useful strategically.

    Keywords: Plant-Based Agribusiness; Distribution; Food; Corporate Entrepreneurship; Management Teams; Capital Budgeting; Business or Company Management; Business Strategy; Corporate Finance; Food and Beverage Industry; Agriculture and Agribusiness Industry;

    Citation:

    Sahlman, William A., and Alison Berkley Wagonfeld. "Earthbound Farm." Harvard Business School Case 807-061, September 2006. View Details
  52. fortu PowerCell GmbH

    Describes the financing, strategy, and growth decisions facing fortu, a young German battery company. The company is contemplating a facility in East Germany, where state subsidies make the finances appealing. A sudden offer to license fortu technology for application in a very promising segment and the ensuing potential cash influx makes fortu examine alternative ways to build its first production plant.

    Keywords: Technological Innovation; Financing and Loans; Business Startups; Growth and Development Strategy; Battery Industry; Germany;

    Citation:

    Roberts, Michael J., William A. Sahlman, Vincent Dessain, Monika Stachowiak, and Anders Sjoman. "fortu PowerCell GmbH." Harvard Business School Case 805-159, June 2005. (Revised July 2006.) View Details
  53. The Turnaround of Chris-Craft

    Describes a set of issues confronting the owners of Chris-Craft, a manufacturer of high-end boats. The company can invest in new monobrand stores, new boat designs, and brand extensions (e.g., apparel). The owners have also recently purchased Indian Head Motorcycle out of liquidation and must determine what to do with the asset.

    Keywords: Entrepreneurship; Luxury; Brands and Branding; Manufacturing Industry; Motorcycle Industry; Entertainment and Recreation Industry; United States;

    Citation:

    Sahlman, William A., Geremy Connor, Brian Doherty, Andrew Murphy, and Taylor Smith. "The Turnaround of Chris-Craft." Harvard Business School Case 806-071, October 2005. (Revised June 2006.) View Details
  54. KnowledgeNet (A)

    Describes the internal reporting package for a rapidly growing company in the e-learning industry. Management must analyze the data in the package and decide what actions to take. They must also decide what to communicate to the board of directors. Contains a description of the company and a copy of the reporting package.

    Keywords: Online Technology; Growth Management; Governing and Advisory Boards; Performance Improvement; Performance Evaluation; Education Industry;

    Citation:

    Sahlman, William A., and Elizabeth Kind. "KnowledgeNet (A)." Harvard Business School Case 803-034, October 2002. (Revised June 2006.) View Details
  55. Beta Golf

    The Beta Group is a technology incubator in Menlo Park, CA that has successfully built a portfolio of businesses in the medical, consumer products, and industrial technology sectors by systematically matching proprietary technologies to unmet market needs. Beta has developed a new golf club technology that allows golfers to reduce the dispersion of miss-hit golf balls. The case addresses questions of strategy and finance as Beta considers its options to commercialize the technology. Also presents an opportunity to discuss Beta's unique investment approach.

    Keywords: Business Strategy; Investment; Financial Strategy; Technology; Commercialization;

    Citation:

    Sahlman, William A., Michael J. Roberts, and Laurence E. Katz. "Beta Golf." Harvard Business School Case 898-162, March 1998. (Revised December 2005.) View Details
  56. Athleta

    The management team at Athleta is attempting to raise equity capital for the company in March 2002. Athleta is a catalog and online retailer of women's athletic clothing. The company has made substantial progress, with anticipated 2002 sales over $20 million, but has been undercapitalized. Given the decline in values in the capital market in early 2002, the company has limited prospects for raising capital on attractive terms.

    Keywords: Management Teams; Financing and Loans; Business Model; Business Strategy; Equity; Capital; Retail Industry;

    Citation:

    Sahlman, William A., and Taslim Pirmohamed. "Athleta." Harvard Business School Case 803-045, September 2002. (Revised July 2012.) View Details
  57. Endeavor-Determining A Growth Strategy

    Describes the progress of a nonprofit organization, Endeavor, focused on nurturing entrepreneurship in emerging markets. At the time of the case, it has successfully expanded to five Latin American countries and is contemplating the next phase in its growth. Specifically, it must decide how quickly and to which countries/regions to expand. In addition, the organization has been successful in raising money at the local level to support its country affiliates, but has had more issues related to raising the funding for its operations in New York. Thus, a key question is which funding model to use to support these headquarters operations. Includes a good deal of information regarding the prevalence of entrepreneurship in various countries, as well as economic data on a great variety of countries. A rewritten version of an earlier case.

    Keywords: Motivation and Incentives; Nonprofit Organizations; Development Economics; Entrepreneurship; Emerging Markets; Policy; Growth and Development Strategy;

    Citation:

    Sahlman, William A., and Michael J. Roberts. "Endeavor-Determining A Growth Strategy." Harvard Business School Case 803-126, January 2003. (Revised November 2005.) View Details
  58. Mt. Auburn Partners Search Fund

    Provides background on search funds and follows two partners as they try to raise financing for a search fund.

    Keywords: Search Funds; Financing and Loans; Financial Condition;

    Citation:

    Sahlman, William A., and Dan Heath. "Mt. Auburn Partners Search Fund." Harvard Business School Case 805-030, September 2004. (Revised October 2005.) View Details
  59. Emergence, Valhalla, and Orchid: Divergent Models for Venture Capital Funds

    Compares and contrasts three different venture capital funds from the perspective of a potential investor. The first fund has a technology-enabled services preference, the second a Mid-Atlantic region preference, and the third a seed round preference. Students are asked to decide which fund (or combination of funds) would be the best investment and which fund would be the most attractive investor for entrepreneurs.

    Keywords: Borrowing and Debt; Entrepreneurship; Service Operations; Technology; Venture Capital;

    Citation:

    Sahlman, William A., and Matthew Willis. "Emergence, Valhalla, and Orchid: Divergent Models for Venture Capital Funds." Harvard Business School Case 804-056, September 2003. (Revised January 2005.) View Details
  60. San Francisco Giants

    Larry Baer, executive vice-president and COO, was eager to improve profitability for the San Francisco Giants baseball team. Over the last few years, the Giants have had a number of successes. They successfully built the first privately financed ball park in over 30 years. They set all-time records in season ticket holders, attendance, and sponsorship advertising. At the same time, the team was highly competitive in the field, ranking first or second in the league and making it to the World Series in 2002. However, they were expected to incur significant operating losses. Baer wondered what he should do.

    Keywords: Buildings and Facilities; Business or Company Management; Success; Sports; Sports Industry; San Francisco;

    Citation:

    Sahlman, William A., and Elizabeth Kind. "San Francisco Giants." Harvard Business School Case 804-092, November 2003. (Revised January 2005.) View Details
  61. Innocent Drinks

    The three founders of a London-based, start-up smoothie company must decide between three growth options: expansion of the existing product line into Europe, extension of the brand into other product categories, or continued organic growth within the United Kingdom.

    Keywords: Growth Management; Expansion; Business Growth and Maturation; Industry Growth; Corporate Entrepreneurship; Corporate Finance; Brands and Branding; Food and Beverage Industry; United Kingdom; Europe;

    Citation:

    Sahlman, William A., and Dan Heath. "Innocent Drinks." Harvard Business School Case 805-031, November 2004. View Details
  62. ClozeX Medical (A): The New Standard of Wound Closure

    Describes a set of decisions confronting the founder of a company with a revolutionary new wound-closure product. He must decide how to finance and exploit his venture.

    Keywords: Business or Company Management; Corporate Entrepreneurship; Product Launch; Medical Specialties; Corporate Finance; Medical Devices and Supplies Industry;

    Citation:

    Sahlman, William A., and Ryland Matthew Willis. "ClozeX Medical (A): The New Standard of Wound Closure." Harvard Business School Case 805-073, November 2004. View Details
  63. Barry Diller and IAC/InterActiveCorp

    Describes a discussion involving Barry Diller and the top management team at IAC/InteractiveCorp. about whether to buy LendingTree.com. If so, at what price and on what terms?

    Keywords: Mergers and Acquisitions; Business Growth and Maturation; Business Strategy; Management Teams; Business or Company Management;

    Citation:

    Sahlman, William A., and Ryland Matthew Willis. "Barry Diller and IAC/InterActiveCorp." Harvard Business School Case 805-072, November 2004. View Details
  64. Valhalla Partners Due Diligence

    The Valhalla Partners venture capitial firm introduced a new approach to the due-diligence process. An internal due-diligence report analyzes Telco Exchange, a startup company in the IT software space. An extended excerpt examines the trade-offs involved in the new due-diligence process and whether Valhalla should invest in Telco Exchange.

    Keywords: Communication Technology; Risk Management; Venture Capital; Business Plan; Corporate Entrepreneurship; Investment; Wireless Technology; Corporate Finance; Financial Services Industry; Telecommunications Industry;

    Citation:

    Sahlman, William A., and Dan Heath. "Valhalla Partners Due Diligence." Harvard Business School Case 805-033, September 2004. View Details
  65. Intuit's New CEO: Steve Bennett

    Describes the transition to a new CEO at Intuit, a successful software and financial services firm in California. The new CEO must decide what to change and how fast. He must also navigate within a culture everyone believes to be successful but he envisions can be improved.

    Keywords: Management Succession; Entrepreneurship; Organizational Culture; Software; Management Teams; Information Technology Industry; Financial Services Industry; California;

    Citation:

    Sahlman, William A., and Alison Berkley Wagonfeld. "Intuit's New CEO: Steve Bennett." Harvard Business School Case 803-044, October 2002. (Revised May 2004.) View Details
  66. Charles River Partnership XI

    Describes a situation confronting the management of a highly successful venture capital firm in April 2002. The industry has changed materially since it raised a $1.2 billion dollar fund, and the partners must decide whether to scale back the size of the fund.

    Keywords: Management; Venture Capital; Partners and Partnerships;

    Citation:

    Sahlman, William A. "Charles River Partnership XI." Harvard Business School Case 804-052, September 2003. (Revised April 2004.) View Details
  67. Marv Tseu at Active Reasoning

    Describes a set of decisions confronting the management team of an early-stage software company. The company has made considerable progress in developing its software but will need additional capital to move forward. Unfortunately, conditions in the capital market are very difficult, and management must decide to address its financial needs. Provides a detailed history of Marv Tseu, the CEO, who had a broad range of interesting experiences in the world of technology.

    Keywords: Software; Financing and Loans; Capital; Business Startups; Information Technology Industry;

    Citation:

    Sahlman, William A., and Christina Darwall. "Marv Tseu at Active Reasoning." Harvard Business School Case 804-077, November 2003. (Revised March 2004.) View Details
  68. Procter & Gamble 2000 (A): The SpinBrush and Innovation at P&G

    Describes a set of decisions confronting some managers in the oral care division of Procter & Gamble. They must decide whether to buy a company that has developed an inexpensive, battery-operated toothbrush. The company's product has done well in one market, but determining an appropriate value and structure is challenging.

    Keywords: Valuation; Innovation and Management; Corporate Entrepreneurship; Mergers and Acquisitions; Product Launch; Corporate Finance; Retail Industry;

    Citation:

    Sahlman, William A., and Ryland Matthew Willis. "Procter & Gamble 2000 (A): The SpinBrush and Innovation at P&G." Harvard Business School Case 804-099, November 2003. View Details
  69. Aspen Aerogels

    Describes a newly formed manufacturer of insulation materials. The company has developed and patented a new insulation material that can be used in a wide range of markets. Capital must be raised to finance building a manufacturing facility and fund early market penetration.

    Keywords: Buildings and Facilities; Patents; Production; Financing and Loans; Business Startups; Construction Industry; Manufacturing Industry;

    Citation:

    Sahlman, William A., and Taslim Pirmohamed. "Aspen Aerogels." Harvard Business School Case 803-068, October 2002. (Revised October 2003.) View Details
  70. Upromise 2002

    Describes a set of decisions confronting the senior management of a company that has established a loyalty rewards program allocating cash to tax-advantaged college savings accounts for participants. The company has recruited a new CEO and needs to raise additional capital in the post-Internet bubble period.

    Keywords: Corporate Entrepreneurship; Venture Capital; Management Teams; Capital; Internet; Decisions;

    Citation:

    Sahlman, William A. "Upromise 2002." Harvard Business School Case 804-058, September 2003. View Details
  71. Allscripts, Inc.

    Describes a set of decisions confronting an entrepreneurial team that is considering taking managerial control of Allscripts, a health care venture. The company has gone through nine rounds of external financing and has changed its business model several times.

    Keywords: Business Model; Business or Company Management; Venture Capital; Corporate Entrepreneurship; Health Care and Treatment; Corporate Finance; Health Industry;

    Citation:

    Sahlman, William A., and Laurence E. Katz. "Allscripts, Inc." Harvard Business School Case 804-053, September 2003. View Details
  72. Epicentric

    Describes a set of decisions confronting the management of a software company that sells portal management tools to large companies. Management must raise additional funds under difficult circumstances.

    Keywords: Finance; Investment Funds; Business or Company Management; Product Marketing; Problems and Challenges; Sales; Information Technology Industry;

    Citation:

    Sahlman, William A. "Epicentric." Harvard Business School Case 803-080, November 2002. (Revised May 2003.) View Details
  73. Amazon.com-2002

    Describes the evolution of Amazon.com and its business model since its founding. Specifically, discusses Amazon's transformation from an e-Tailer to a commerce platform and its marketplace initiative, which has driven this. Also describes the economics of various commerce models that Amazon employs and discusses a decision confronting Jeff Bezos regarding how the company should participate in the apparel segment.

    Keywords: Business Model; Market Platforms; Online Technology; Transformation; Retail Industry;

    Citation:

    Leschly, Stig, Michael J. Roberts, William A. Sahlman, and Todd H Thedinga. "Amazon.com-2002." Harvard Business School Case 803-098, November 2002. (Revised February 2003.) View Details
  74. Anasazi Exclusive Salon Products, Inc.

    Anasazi, a hair-care products start-up based in the Midwest, is having growing pains as it tries to develop a new distribution model for the professional hair salon industry. The company has completed several rounds of venture financing but, to continue, needs to raise more capital earlier than expected. It goes through a process of refining and refocusing its strategy to raise the new funds.

    Keywords: Business Startups; Financial Condition; Venture Capital; Financial Strategy; Financing and Loans; Expansion; Planning; Fashion Industry; Iowa;

    Citation:

    Sahlman, William A., and Jason Green. "Anasazi Exclusive Salon Products, Inc." Harvard Business School Case 295-111, April 1995. (Revised January 2003.) View Details
  75. Financial Analysis of Microsoft

    Contains a detailed analysis of Microsoft's financial performance from 1985 to 2001. During this time, Microsoft improved its profitability and cash flow generation--changes that led to a dramatic rise in valuation. Also addresses the issue of determining how much excess profit the company might have earned as a result of its illegal activities, as alleged and proved by the U.S. government.

    Keywords: Business Ventures; Analysis; Financial Condition;

    Citation:

    Sahlman, William A. "Financial Analysis of Microsoft." Harvard Business School Background Note 803-019, August 2002. (Revised September 2002.) View Details
  76. Preview Travel (A)

    Preview Travel was a leader in the online travel industry, having generated $80 million in bookings in 1997 and growing at a 34% compound annual growth rate per quarter. This case describes the evolution of Preview Travel's business plan and financing strategy and highlights a financial turning point that the company faced in August 1997. In August 1997, the company was in need of an additional cash infusion and had received strong indications of interest from a major U.S. media company. However, Preview Travel was disappointed with the offer the media company eventually made--$4.50 a share--since it was significantly less than the Series E round a year earlier ($9.00 a share). An investment bank advising Preview Travel believed that Preview Travel could garner a higher valuation in the public market and recommended that the company consider an IPO as an alternative means of raising capital. However, there were risks to this strategy. Closes with the question of whether Preview Travel should accept the "sure" but low offer from the media company or pursue an accelerated and potentially risky IPO.

    Keywords: Risk and Uncertainty; Business Model; Initial Public Offering; Valuation; Internet; Business Plan; Capital; Financial Strategy; Travel Industry; United States;

    Citation:

    Sahlman, William A., Nicole Tempest, Daniel H Case III, and Robert Keller. "Preview Travel (A)." Harvard Business School Case 899-085, October 1998. (Revised May 2001.) View Details
  77. Barnesandnoble.com (A), (B), and (C) TN

    Teaching Note for (9-898-082), (9-901-023), and (9-901-024). For book only.

    Keywords: Retail Industry; Web Services Industry;

    Citation:

    Rayport, Jeffrey F., Goutam Challagalla, and William A. Sahlman. "Barnesandnoble.com (A), (B), and (C) TN." Harvard Business School Teaching Note 901-026, April 2001. View Details
  78. Microsoft Carpoint

    Teaching Note for (9-898-280). For book only - not listed on case.

    Keywords: Competitive Strategy; Internet; Service Delivery; Partners and Partnerships; Change; Customers; Web Services Industry;

    Citation:

    Rayport, Jeffrey F., Steven Silverman, and William A. Sahlman. "Microsoft Carpoint." Harvard Business School Teaching Note 901-028, April 2001. View Details
  79. first direct (A) TN

    Teaching Note for (9-897-079). For book only - not listed on case.

    Keywords: Customer Focus and Relationships; Technology; Customer Satisfaction; Business Model; Banking Industry; United Kingdom;

    Citation:

    Rayport, Jeffrey F., Michelle Toth, and William A. Sahlman. "first direct (A) TN." Harvard Business School Teaching Note 901-033, April 2001. View Details
  80. Marshall Industries TN

    Teaching Note for (9-899-239). For book only - not listed on case.

    Keywords: Internet; Transformation; Service Delivery; Technological Innovation; Compensation and Benefits; Distribution Industry;

    Citation:

    Rayport, Jeffrey F., Elliot N. Maltz, and William A. Sahlman. "Marshall Industries TN." Harvard Business School Teaching Note 901-038, April 2001. View Details
  81. MindSpring TN

    Teaching Note for (9-899-178). For book only - not listed on case.

    Keywords: Customer Satisfaction; Growth and Development Strategy; Mergers and Acquisitions; Organizational Culture; Competitive Strategy; Web Services Industry;

    Citation:

    Rayport, Jeffrey F., Steven Silverman, and William A. Sahlman. "MindSpring TN." Harvard Business School Teaching Note 901-039, April 2001. View Details
  82. FIRST: For Inspiration and Recognition of Science and Technology

    Describes some strategic and financial issues confronting the founder and executive director of a not-for-profit organization dedicated to improving awareness of and interest in science and technology among elementary and high school students. The organization sponsors national robotics competitions.

    Keywords: Middle School Education; Finance; Nonprofit Organizations; Cognition and Thinking; Strategy; Technology;

    Citation:

    Sahlman, William A. "FIRST: For Inspiration and Recognition of Science and Technology." Harvard Business School Case 801-380, March 2001. View Details
  83. BarnesandNoble.com (B)

    At the end of 1998, Jonathan Bulkeley, the newly-named CEO of barnesandnoble.com, is faced with a challenge. As the second leading online bookseller behind Amazon.com, barnesandnoble.com must build its market share. With Forrester Research predicting that the online bookselling market would grow to $3 billion in 2003, how could barnesandnoble.com attract more of the "newbies" coming onto the web to its site and become the leading online bookseller--as it was in the bricks-and-mortar world--over the long run?

    Keywords: Internet; Marketing Strategy; Publishing Industry;

    Citation:

    Rayport, Jeffrey F., Dickson Louie, and William A. Sahlman. "BarnesandNoble.com (B)." Harvard Business School Case 901-023, February 2001. View Details
  84. BarnesandNoble.com (C)

    At the end of 1999, Steve Riggio, the vice chairman and acting CEO of barnesandnoble.com, wonders what his company should do next against Amazon.com, the online retailer who is the leading online book seller in the United States. While barnesandnoble.com has been careful to expand into new categories related to media--such as magazines, CDs, and posters--Amazon.com has expanded into a variety of seemingly unrelated categories--such as Z-shops, auctions, and power tools. While some see this expansion as a weakness in Amazon.com's branding strategy, how could Riggio and barnesandnoble.com best exploit this so that they become the leading online bookseller over the long run in terms of market share and mind share?

    Keywords: Competitive Strategy; Competitive Advantage; Internet; Diversification; Brands and Branding; Retail Industry;

    Citation:

    Rayport, Jeffrey F., Dickson Louie, and William A. Sahlman. "BarnesandNoble.com (C)." Harvard Business School Case 901-024, February 2001. View Details
  85. Nantucket Nectars

    The founders of Nantucket Nectars are trying to decide whether to sell their company. The case describes how the founders started the company and grew the Nantucket Nectars brand name.

    Keywords: Business Exit or Shutdown; Entrepreneurship; Brands and Branding; Food and Beverage Industry; United States;

    Citation:

    Lassiter, Joseph B., III, William A. Sahlman, and Jon Biotti. "Nantucket Nectars." Harvard Business School Case 898-171, February 1998. (Revised December 2000.) View Details
  86. SupplierMarket.com (A)

    Describes a decision confronting the cofounders of a B2B Internet firm that focuses on the purchasing process for manufactured direct materials. The company has raised one round of capital from two prominent venture capital firms and must decide if it makes sense to raise more capital sooner than had been originally anticipated. Their experiment appears to be successful and they must design the logical next experiment. The company eventually raises money from LBO firms, whose portfolio companies become customers.

    Keywords: Leveraged Buyouts; Customers; Decisions; Venture Capital; Internet;

    Citation:

    Sahlman, William A., and Jared Stone. "SupplierMarket.com (A)." Harvard Business School Case 801-228, December 2000. View Details
  87. UPromise

    Describes the development of UPromise, a company that has developed a loyalty program through which corporate partners can contribute to funds that finance the education of consumers' children. Presents the accomplishments prior to the company's second round of financing and asks students to consider how the recent NASDAQ drop could or should affect the company's ability to raise money.

    Keywords: Higher Education; Corporate Entrepreneurship; Venture Capital; Financial Markets; Programs;

    Citation:

    Roberts, Michael J., and William A. Sahlman. "UPromise." Harvard Business School Case 801-321, November 2000. View Details
  88. FireDrop

    Describes the evolution of FireDrop, a new venture-backed company that has developed a new platform for e-mail communication. The FireDrop application--called a Zaplet--allows for e-mails to be continually updated so they are current when read (rather than when sent). The company has received several rounds of venture capital financing, and now it must raise another large round, simultaneously deciding which of six alternative business models to pursue.

    Keywords: Business Model; Internet; Communication Technology; Venture Capital; Technological Innovation; Information Technology Industry;

    Citation:

    Sahlman, William A., and Michael J. Roberts. "FireDrop." Harvard Business School Case 801-214, November 2000. View Details
  89. Interactive Minds (A)

    The efforts of two recent Harvard Business School graduates to start a venture capital/consulting firm focused on opportunities related to the Internet are recounted. Raises the question of what the nature of this opportunity is, how well-positioned the protagonists are to pursue it, and what the deal structure should be.

    Keywords: Venture Capital; Internet; Market Entry and Exit; Financing and Loans; Business Startups; Consulting Industry;

    Citation:

    Sahlman, William A., Michael J. Roberts, and Christina L. Darwall. "Interactive Minds (A)." Harvard Business School Case 898-072, November 1997. (Revised October 2000.) View Details
  90. FairMarket: Managing Business Development

    Describes the evolution of FairMarket, a provider of turnkey auction services to community and merchant Web sites. Describes several deals that the CEO must negotiate, requiring a view of the company's valuation.

    Keywords: Partners and Partnerships; Internet; Valuation; Negotiation Deal; Auctions; Growth and Development Strategy; Web Services Industry;

    Citation:

    Sahlman, William A., Michael J. Roberts, and Cathy Taylor. "FairMarket: Managing Business Development." Harvard Business School Case 800-212, November 1999. (Revised June 2000.) View Details
  91. Patagon.com: Building (and Defending) the First Financial Destination in Latin America

    Describes Patagon.com, a company trying to build a financial portal in Latin America. The company's founders, Wenceslao Casares and Constancio Larguia, must deal with complex financial and strategic challenges as they guide the company in a difficult context.

    Keywords: Strategy; Internet; Entrepreneurship; Problems and Challenges; Business Startups; Finance; Financial Services Industry; Latin America;

    Citation:

    Sahlman, William A., Ramiro Montealegre, and Luis Pereiro. "Patagon.com: Building (and Defending) the First Financial Destination in Latin America." Harvard Business School Case 800-185, January 2000. (Revised May 2000.) View Details
  92. Circles

    Janet Kraus and Kathy Sherbrooke started a resource and referral company specializing in helping busy people get things done. Issues include financing and product and marketing strategy.

    Keywords: Marketing Strategy; Resource Allocation; Financing and Loans; Business Startups; Service Industry; United States;

    Citation:

    Sahlman, William A., and Jon Biotti. "Circles." Harvard Business School Case 898-043, September 1997. (Revised March 2000.) View Details
  93. Knot, The

    An online wedding resource company is seeking an equity investment to grow the business.

    Keywords: Entrepreneurship; Business Model; Venture Capital; Value Creation; Internet; Finance; Expansion; Strategic Planning; Service Industry; Consulting Industry;

    Citation:

    Sahlman, William A., Michael J. Roberts, and Matthew C. Lieb. "Knot, The." Harvard Business School Case 899-116, December 1998. (Revised March 2000.) View Details
  94. E Ink: Financing Growth

    A set of financial and strategic decisions confront the management of a company trying to develop a technology for creating "electronic ink." If successful, the company will be able to create "radio paper," essentially turning a piece of paper into a computer monitor that has all the characteristics of paper but is digitally controlled.

    Keywords: Entrepreneurship; Financial Management; Technological Innovation; Growth and Development Strategy; Strategy; Hardware;

    Citation:

    Sahlman, William A., and Matthew C. Lieb. "E Ink: Financing Growth." Harvard Business School Case 800-252, December 1999. View Details
  95. Amazon.com--Going Public

    Amazon.com, an early pioneer in electronic commerce, prepares its initial public offering in the face of turbulent market conditions. Joy Covey, Amazon.com's CFO and the case protagonist, discusses the risks and opportunities of going public and the nature of electronic commerce business models in comparison to traditional land-based retail models. This case presents an opportunity to discuss the public offering process and the inter-relationship between a young company's financing strategy and business strategy.

    Keywords: Going Public; Risk and Uncertainty; Business Model; Financial Strategy; Business Strategy; Initial Public Offering; Electronics Industry; Retail Industry;

    Citation:

    Sahlman, William A., and Laurence E. Katz. "Amazon.com--Going Public." Harvard Business School Case 899-003, October 1998. (Revised August 1999.) View Details
  96. Chemdex.com

    An Internet start-up company is developing an online marketplace for specialty chemicals and reagents. David Perry has been named a runner-up in the 1st annual HBS Business Plan contest and now faces seed-stage financing questions--how much money to raise, at what valuation, in how many stages, and from whom.

    Keywords: Valuation; Internet; Chemicals; Business Startups; Capital; Chemical Industry;

    Citation:

    Sahlman, William A., Michael J. Roberts, and Laurence E. Katz. "Chemdex.com." Harvard Business School Case 898-076, January 1998. (Revised June 1999.) View Details
  97. DigitalThink: Startup

    Describes a recent Berkeley MBA's attempts to start a business aimed at corporate training via the Internet. Describes the very early efforts at finding an attorney, accountant, and financing, and the interrelationships among these choices.

    Keywords: Internet; Entrepreneurship; Problems and Challenges; Business Startups; Service Industry;

    Citation:

    Sahlman, William A., Michael J. Roberts, and Christina L. Darwall. "DigitalThink: Startup." Harvard Business School Case 898-186, February 1998. (Revised June 1999.) View Details
  98. Susan Brown

    A number of issues confront an associate in a venture capital firm. She has just learned that her senior partners are not yet willing to make her a general partner of the firm. She has several options and must decide what to do.

    Keywords: Human Resources; Venture Capital; Personal Development and Career; Leadership Development; Organizational Change and Adaptation; Financial Services Industry;

    Citation:

    Sahlman, William A. "Susan Brown." Harvard Business School Case 899-282, May 1999. View Details
  99. Capital Market Myopia

    Focuses attention on a phenomenon we call capital market myopia, a situation in which participants in the capital markets ignore the logical implications of their individual investment decisions. Viewed in isolation, each decision seems to make sense. When taken together, however, they are a prescription for disaster. Capital market myopia leads to over-funding of industries and unsustainable levels of valuation in the stock market. Uses the Winchester Disk industry to elucidate the phenomenon. Argues that capital market participants should have seen the problem coming. They should have known that valuation levels were absurd, based in large part on the greater fool theory. The data necessary to anticipate the problem were readily available before the industry shakeout began and stock prices collapsed. Offers some simple lessons to help investors and entrepreneurs avoid charter membership in the greater fool club.

    Keywords: Capital Markets;

    Citation:

    Sahlman, William A., and Howard H. Stevenson. "Capital Market Myopia." Harvard Business School Background Note 288-005, August 1987. (Revised December 1998.) View Details
  100. HIMSCORP, Inc.

    Himscorp is an industry consolidation of records storage companies providing management and retrieval services of active medical records to healthcare institutions. Kent Dauten, a former general partner at Madison Dearborn Partners with 15 years of venture capital and buyout experience, has personally sponsored the industry consolidation and is considering whether to invest in growth, sell to a strategic buyer, or pursue an initial public offering. This case presents an opportunity to discuss the process of a roll-up and the sources of value creation.

    Keywords: Value Creation; Initial Public Offering; Business Exit or Shutdown; Business Growth and Maturation; Decision Choices and Conditions; Consolidation; Information Industry;

    Citation:

    Sahlman, William A., Michael J. Roberts, and Laurence E. Katz. "HIMSCORP, Inc." Harvard Business School Case 899-021, August 1998. View Details
  101. Record Masters

    Kent Dauten, a former general partner at the Chicago private equity firm of Madison Dearborn Partners, has engaged in a search to personally sponsor a buyout in which he can play an active management role. He has received a selling memorandum for Record Masters, a records storage company providing management and retrieval services for active medical records to health care institutions. The case presents excerpts from the selling memorandum and asks students to assess the attractiveness of the opportunity, key risks, valuation, and deal structuring.

    Keywords: Risk and Uncertainty; Leveraged Buyouts; Valuation; Negotiation Deal; Investment;

    Citation:

    Sahlman, William A., Michael J. Roberts, and Laurence E. Katz. "Record Masters." Harvard Business School Case 899-020, August 1998. View Details
  102. Project "Dial-Tone"

    Bob Hellman, a partner in a West Coast middle-market buyout firm, is attempting to simultaneously acquire and merge three disparate firms in the rapidly consolidating telemarketing services industry. Hellman must value the individual companies as well as the combined entity, structure a deal that is attractive to each party, and evaluate the prospects for the combined entity while developing a plan of action to more fully develop the deal.

    Keywords: Complexity; Private Equity; Integration; Mergers and Acquisitions; Negotiation Deal; Strategic Planning; Investment; Opportunities; Valuation; Service Industry;

    Citation:

    Sahlman, William A., and Andrew S. Janower. Project "Dial-Tone". Harvard Business School Case 897-003, November 1996. (Revised August 1997.) View Details
  103. Entrepreneurial Finance: Course Introduction

    Designed to introduce students in Entrepreneurial Finance to the subject matter and modus operandi of the course. Also included is an annotated bibliography.

    Keywords: Entrepreneurship; Finance;

    Citation:

    Sahlman, William A. "Entrepreneurial Finance: Course Introduction." Harvard Business School Course Overview Note 288-004, July 1987. (Revised August 1997.) View Details
  104. Horizon Group

    Contains a description of a situation confronting the co-founder of a company planning to produce software for microcomputers. The company has just completed raising money from some wealthy investors by forming an R&D Limited Partnership. Development of the program (an integrated business productivity tool) can now begin. The focus is on the structure of the deal and the process of venture formation. Among the issues to be discussed are: Should the company have raised money from these investors under these terms? What can go wrong? What can go right?

    Keywords: Business or Company Management; Venture Capital; Partners and Partnerships; Business Plan; Outcome or Result; Research and Development; Financial Strategy; Corporate Finance; Information Technology Industry;

    Citation:

    Sahlman, William A. "Horizon Group." Harvard Business School Case 286-058, January 1986. (Revised March 1997.) View Details
  105. Lotus Development Corp.

    Contains a description of the history and venture capital financing of Lotus Development. Focuses on issues related to the possible terms of investment in Lotus by a major venture capital firm. The pedagogic objectives in the case are: to explore the elements of the people/opportunity/deal analytical framework; to expose students to issues in venture capital financing of high potential ventures; to explore the causes of success; and to explore the distinctions between creativity, innovation, implementation, and entrepreneurship.

    Keywords: Technological Innovation; Business or Company Management; Venture Capital; Organizational Structure; Entrepreneurship; Financing and Loans; Outcome or Result; Corporate Finance; Planning; Computer Industry;

    Citation:

    Sahlman, William A. "Lotus Development Corp." Harvard Business School Case 285-094, January 1985. (Revised February 1997.) View Details
  106. Carlton Polish Co.

    Students are asked to determine the fair market value of Carlton Polish Co. and decide if Mr. Carlton should buy out his partner's half for $25 million. Carlton's alternative is to sell his half for $25 million. Students must also evaluate a financing plan.

    Keywords: Value; Financing and Loans; Partners and Partnerships; Leveraged Buyouts; Fair Value Accounting;

    Citation:

    Sahlman, William A. "Carlton Polish Co." Harvard Business School Case 283-008, May 1983. (Revised January 1997.) View Details
  107. Beechwood Spouts (B)

    Eight months has passed since Barker first invested in Beechwood Spouts, and the company's situation has deteriorated. The problems appear to be resolved. Barker must now decide whether to participate in a crucial bridge financing round, without which the company will go bankrupt.

    Keywords: Decision Making; Entrepreneurship; Venture Capital; Insolvency and Bankruptcy; Financing and Loans; Information;

    Citation:

    Sahlman, William A., and Andrew S. Janower. "Beechwood Spouts (B)." Harvard Business School Case 396-041, October 1995. (Revised December 1996.) View Details
  108. Some Thoughts on Business Plans

    A framework for assessing new business opportunities and the business plans used to describe them is developed. Useful for aspiring entrepreneurs in MBA programs.

    Keywords: Business Plan; Entrepreneurship; Framework; Opportunities;

    Citation:

    Sahlman, William A. "Some Thoughts on Business Plans." Harvard Business School Background Note 897-101, November 1996. View Details
  109. ThermoLase

    John Hansen, CEO of ThermoLase, must develop a plan of action to exploit the company's new development-stage revolutionary hair removal technology with negligible revenues and a $500 million market capitalization. This nascent public Thermo Electron spin out company has the opportunity to change the U.S. beauty industry if Hansen can develop and execute an effective rollout strategy. Teachng Purpose: To introduce students to the Thermo Electron development strategy in the context of a high-potential, development-stage, retail/consumer-oriented business.

    Keywords: Business or Company Management; Corporate Entrepreneurship; Venture Capital; Business Strategy; Growth and Development Strategy; Business Plan; Beauty and Cosmetics Industry;

    Citation:

    Sahlman, William A., and Andrew S. Janower. "ThermoLase." Harvard Business School Case 897-002, August 1996. View Details
  110. Pathfinder Capital

    Two former consultants have raised a search fund and are looking for a company to buy and run. After eight months of looking at deals, they have just signed a letter of intent to buy the second largest book retail chain in Canada in a turnaround situation. They must now decide whether to go through with the deal and, if so, how to raise the necessary financing.

    Keywords: Entrepreneurship; Business Startups; Leveraged Buyouts; Financing and Loans; Venture Capital; Change; Decisions;

    Citation:

    Sahlman, William A., and Andrew S. Janower. "Pathfinder Capital." Harvard Business School Case 396-067, June 1996. View Details
  111. Free Cash Flow Valuation Problem Set

    Free cash flow valuation problems: 1) build a simple pro forma, 2) value a public company's stock, and 3) evaluate a proposed LBO.

    Keywords: Leveraged Buyouts; Cash Flow; Public Ownership; Problems and Challenges; Valuation;

    Citation:

    Sahlman, William A., and Andrew S. Janower. "Free Cash Flow Valuation Problem Set." Harvard Business School Exercise 396-269, February 1996. View Details
  112. InterZine Productions, Inc.

    Brian Henley founded InterZine Productions to develop interactive multimedia content for America Online (AOL) and the Internet. With funding and support from AOL's Greenhouse program, Henley has launched Golf, a unique interactive golf service. While he has operated on a bootstrap budget to date, Henley is running out of cash and must now decide how best to raise the capital to finance continued growth.

    Keywords: Business Ventures; Entrepreneurship; Growth and Development Strategy; Capital; Financing and Loans; Internet; Management Teams; Innovation and Invention; Media and Broadcasting Industry;

    Citation:

    Sahlman, William A., and Jason Green. "InterZine Productions, Inc." Harvard Business School Case 396-174, November 1995. View Details
  113. Centex Telemanagement, Inc. (A)

    Contains a description of the events surrounding the financing of Centex Telemanagement, Inc. by Sierra Ventures, a venture capital fund. The case is written from the perspective of the venture capitalists and is designed to teach students about the process of venture capital funding. A rewritten version of Centex Telemanagement, Inc., this series separates two decisions.

    Keywords: Business Startups; Venture Capital; Entrepreneurship; Financing and Loans;

    Citation:

    Sahlman, William A., and Andrew S. Janower. "Centex Telemanagement, Inc. (A)." Harvard Business School Case 396-101, October 1995. View Details
  114. Centex Telemanagement, Inc. (B)

    Contains a description of the events surrounding the financing of Centex Telemanagement, Inc. by Sierra Ventures, a venture capital fund. The case is written from the perspective of the venture capitalists and is designed to teach students about the process of venture capital funding.

    Keywords: Venture Capital; Financing and Loans; Financial Institutions; Business Startups;

    Citation:

    Sahlman, William A., and Andrew S. Janower. "Centex Telemanagement, Inc. (B)." Harvard Business School Case 396-102, October 1995. View Details
  115. Richina Capital Partners Limited

    Richard Yan and Suzanne Foels raise a $52.5 million fund to invest in Chinese companies in concert with major multinational companies. They face all the challenges of starting a business from scratch in addition to the challenges of operating in a cross-cultural environment with poor infrastructure and a strict regulatory environment. At issue is how to expand successfully beyond their initial investments.

    Keywords: Business Startups; Venture Capital; Problems and Challenges; Emerging Markets; Multinational Firms and Management; Cross-Cultural and Cross-Border Issues; Governance Compliance; Business Strategy; Expansion; Investment Return; China;

    Citation:

    Sahlman, William A., and Jason Green. "Richina Capital Partners Limited." Harvard Business School Case 396-059, September 1995. View Details
  116. Benjamin Rosen and Compaq

    Addresses the challenges faced by Ben Rosen and the company board of directors as continuing problems force it to make a decision about the ongoing governance of the firm. The issues are complicated by the current CEO and founder, Rod Canion, who has had, until recently, a very successful track record and is very highly regarded within the company and the industry.

    Keywords: Governing and Advisory Boards; Management Teams; Business or Company Management; Corporate Governance; Problems and Challenges; Decision Making; Information Technology Industry;

    Citation:

    Sahlman, William A., and Jason Green. "Benjamin Rosen and Compaq." Harvard Business School Case 296-002, September 1995. View Details
  117. Quorum Health Group, Inc.

    Facing increasing competition from much larger industry players, Jim Dalton, CEO of Quorum, and Russ Carson, Managing Partner of Welch, Carson, Anderson & Stowe attempt to set the future direction for Quorum. The company was successfully spun-off from HCA in a management buyout and subsequently started acquiring hospitals to add to its management control service operation.

    Keywords: Growth and Development Strategy; Competitive Strategy; Consolidation; Leveraged Buyouts; Venture Capital; Acquisition; Health Industry;

    Citation:

    Sahlman, William A., and Jason Green. "Quorum Health Group, Inc." Harvard Business School Case 295-156, June 1995. View Details
  118. VideoGuide, Inc. (A)

    VideoGuide is emerging from a development stage start-up and requires a significant capital infusion to commercialize its product. Various financing options are considered including going public, venture capital, private placement, or a strategic partner. Given the "heated" IPO market, VideoGuide is leaning toward going public.

    Keywords: Capital Budgeting; Capital; Venture Capital; Financing and Loans; Corporate Entrepreneurship; Initial Public Offering; Markets; Partners and Partnerships; Growth and Development Strategy; Going Public;

    Citation:

    Sahlman, William A., and Jason Green. "VideoGuide, Inc. (A)." Harvard Business School Case 295-051, November 1994. View Details
  119. Oak Industries Inc.

    Describes Bill Antle's proposed restructuring plans for Oak Industries, a company composed of nine divisions which seem to be experiencing operating difficulties. During the last ten years the company has been involved in a number of acquisitions and divestitures, as well as financing initiatives which the stock market has viewed unfavorably. Antle is a former management consultant who was asked to lead Oak after a recent proxy contest.

    Keywords: Entrepreneurship; Business or Company Management; Operations; SWOT Analysis; Organizational Structure; Restructuring; Financial Management; Acquisition; Financial Markets;

    Citation:

    Sahlman, William A., and Burton C. Hurlock. "Oak Industries Inc." Harvard Business School Case 292-086, November 1991. (Revised September 1993.) View Details
  120. Harris Seafoods, Inc.

    Presents data relevant to a major capital expenditure--the construction of a shrimp plant. Designed to test student's ability to identify relevant cash flows, to estimate the cost of capital, and to decide whether or not to invest.

    Keywords: Decision Making; Cash Flow; Cost of Capital; Factories, Labs, and Plants; Food and Beverage Industry; Agriculture and Agribusiness Industry;

    Citation:

    Fruhan, William E., Jr., and William A. Sahlman. "Harris Seafoods, Inc." Harvard Business School Case 281-054, February 1981. (Revised June 1993.) View Details
  121. Centex Telemanagement, Inc.

    Contains a description of the events surrounding the financing of Centex Telemanagement, Inc. by Sierra Ventures, a venture capital fund. The case is written from the perspective of the venture capitalists and is designed to teach students about the process of venture capital funding.

    Keywords: Venture Capital;

    Citation:

    Sahlman, William A. "Centex Telemanagement, Inc." Harvard Business School Case 286-059, January 1986. (Revised March 1993.) View Details
  122. Star Cablevision Group (A): Harvesting in a Bull Market

    First case in a series of six cases that follow the experience of a cable television company as it adjusts to the rapid rise and precipitous decline of the stock market in the late 1980s. In this case Don Jones, the company's founder and owner, sees the rise in public cable television company values as an opportunity to consolidate a degree of personal wealth. Concludes with Jones considering a range of harvesting strategies.

    Keywords: Behavioral Finance; Financial Markets; Corporate Entrepreneurship; Business Startups; Restructuring; Corporate Strategy; SWOT Analysis; Wealth; Business Cycles; Entertainment and Recreation Industry;

    Citation:

    Sahlman, William A. "Star Cablevision Group (A): Harvesting in a Bull Market." Harvard Business School Case 293-036, September 1992. View Details
  123. Star Cablevision Group (D): Financial Crisis and Managing Constituencies

    Fourth case in a series of six cases. This case describes the company as it reaches financial crisis and manages constituencies.

    Keywords: Business Ventures; Finance; Management; Crisis Management; Entertainment and Recreation Industry;

    Citation:

    Sahlman, William A. "Star Cablevision Group (D): Financial Crisis and Managing Constituencies." Harvard Business School Case 293-039, September 1992. View Details
  124. Note on the Financial Perspective: What Should Entrepreneurs Know?

    Identifies concepts and tools of finance that are useful to general managers and critical to entrepreneurs: cash, risk, and value.

    Keywords: Entrepreneurship; Cash; Financial Strategy; Management Analysis, Tools, and Techniques; Managerial Roles; Risk Management; Value;

    Citation:

    Sahlman, William A. "Note on the Financial Perspective: What Should Entrepreneurs Know?" Harvard Business School Background Note 293-045, September 1992. View Details
  125. Fenchel Lampshade Co.

    Describes the proposed purchase of a lampshade manufacturer by Steven and Michele Rogers, recent graduates of the Harvard Business School. Focuses on their plans to raise the capital necessary to buy the company. Among the issues raised are how to structure the deal and whether or not to buy the company.

    Keywords: Venture Capital; Financing and Loans; Negotiation Deal; Business or Company Management; Cost vs Benefits; Manufacturing Industry;

    Citation:

    Sahlman, William A. "Fenchel Lampshade Co." Harvard Business School Case 291-014, February 1991. (Revised October 1991.) View Details
  126. Parenting Magazine

    Describes a set of decisions confronting Robin Wolaner, who is negotiating with representatives of Time Inc. about investing in a project to launch a new magazine called Parenting. The negotiations have reached an impasse. Among the issues to be considered are the following: 1) How do you assess the opportunity that Wolaner has identified? 2) How much money does Wolaner need? From whom should the capital be raised? 3) Is the proposed deal with Time Inc. reasonable? From whose perspective? What changes, if any, should be made to the deal? 4) What should Wolaner do?

    Keywords: Business or Company Management; Decision Choices and Conditions; Negotiation; Negotiation Deal; Valuation; Venture Capital; Financing and Loans; Outcome or Result; Risk and Uncertainty; Projects; Journals and Magazines; Journalism and News Industry; Publishing Industry;

    Citation:

    Sahlman, William A. "Parenting Magazine." Harvard Business School Case 291-015, October 1990. View Details
  127. Note on Financial Contracting: ""Deals""

    Describes the issues involved in designing and evaluating financial contracts between users and suppliers of capital and between companies and employees. A simple conceptual framework is introduced and some critical issues addressed: 1) How is cash allocated? 2) How is risk allocated? and 3) What are the incentives for all parties in the deal? The emphasis in the note is on providing the reader with a set of questions that must be addressed when designing and evaluating any deals. Created for use in Entrepreneurial Finance. Can be used to provide general background reading or as an assignment for a day devoted to the discussion of deals.

    Keywords: Contracts; Framework; Problems and Challenges; Corporate Finance;

    Citation:

    Sahlman, William A. Note on Financial Contracting: ""Deals"". Harvard Business School Background Note 288-014, August 1987. (Revised June 1989.) View Details
  128. Precision Parts, Inc. (A)

    Contains a description of a decision confronting two entrepreneurs in mid-1981. They are considering purchasing a small manufacturer of precision electromechanical parts. Among the issues in the case are the following: 1) Should Taylor and Grayson buy Precision Parts, Inc.? 2) Should Shawmut Bank provide the loan? 3) Should the venture capital firms invest? 4) What should Taylor and Grayson do? The case is designed to expose students to a different kind of opportunity. Also, students will have to ask and answer the questions: What can go wrong and what can go right? They must develop a plan for managing the risk-reward ratio in their favor.

    Keywords: Leveraged Buyouts; Venture Capital; Financing and Loans; Cost vs Benefits; Investment Return; Strategy; Management Practices and Processes; Risk and Uncertainty; Outcome or Result; Manufacturing Industry;

    Citation:

    Sahlman, William A. "Precision Parts, Inc. (A)." Harvard Business School Case 285-131, March 1985. (Revised November 1988.) View Details
  129. Harris Seafoods Leveraged Buyout

    Describes set of issues confronting Alison Lassiter, who is trying to help Charlie Harris arrange a leveraged buyout of the shrimp company he runs, a division of a publicly traded company, Katy Industries. Lassiter has prepared a memorandum discussing and analyzing the company in detail and performed some preliminary analyses on the economics of the transaction. Many issues remain, including: 1) What is the maximum price Harris should pay? 2) How and when should he approach Katy with a proposal? 3) What should the elements of the proposal be? 4) From whom should the equity funds be raised and how much should be raised? 5) What lenders should be approached and how? 6) How should the pie be sliced? (i.e., What proportion should management get? The equity investors? The lenders?) 7) Assuming the deal can be pulled off, what will the critical success factors be? Presents an opportunity to hone analytical skills and, more important, to discuss how to manage the process so that a deal acceptable to all parties can be structured. Students may be asked to take different perspectives--management, lenders--and be prepared to discuss them.

    Keywords: Leveraged Buyouts; Venture Capital; Financing and Loans; Equity; Cost vs Benefits; Negotiation Tactics; Negotiation Preparation; Financial Management; Strategy; Management Analysis, Tools, and Techniques; Planning; Food and Beverage Industry; Industrial Products Industry;

    Citation:

    Sahlman, William A. "Harris Seafoods Leveraged Buyout." Harvard Business School Case 289-019, October 1988. View Details
  130. Technical Data Corp.

    Describes a decision confronting the president of a small company about selling some or all of the shares in his company to another firm. Technical Data Corp. provides analytical services to professional bond market traders over a system of computer terminals operated by Telerate. The company began operation in 1980 and has been very successful. The key issues in the case are: how the value of the company should be estimated and what a reasonable negotiating strategy for the potential sale of the company is.

    Keywords: Stocks; Entrepreneurship; Business Startups; Internet; Technology Networks; Wireless Technology; Valuation; Negotiation Tactics; Mergers and Acquisitions; Corporate Strategy; Horizontal Integration; Information Industry; Service Industry;

    Citation:

    Sahlman, William A. "Technical Data Corp." Harvard Business School Case 283-072, May 1983. (Revised December 1987.) View Details
  131. Technical Data Corp.: Business Plan

    Contains materials extracted from a business plan developed by the company in 1980. The purpose of the business plan was to raise $100,000 to finance the commencement of operations. The firm intended to provide analytical services to bond market traders. The product would be distributed to traders over a system of computer terminals operated by Telerate. Intended to act as a vehicle for discussing business plans per se, and how one decides to invest in new ventures more generally.

    Keywords: Business Plan;

    Citation:

    Sahlman, William A. "Technical Data Corp.: Business Plan." Harvard Business School Case 283-073, May 1983. (Revised November 1987.) View Details
  132. What Do Venture Capitalists Do?

    Presents the results derived from 49 responses to a questionnaire mailed to 100 venture capitalists in late 1984. The purpose of the survey was to shed light on the relationship between venture capitalists and their portfolio companies. The survey revealed that the venture capitalists who responded spend about half their time monitoring nine portfolio investments of which five are companies on whose boards they sit. For the latter group of companies, a venture capitalist typically devotes 80 hours of on-site time and 30 hours of phone time to each company in a year. The most frequently performed service for portfolio companies is to help raise additional funds, with strategic analysis and management recruiting also mentioned as important roles. Finally, the venture capitalists in the survey had replaced an average of three CEOs during their careers, and considered weak senior management to be the dominant cause of venture failure.

    Keywords: Borrowing and Debt; Venture Capital; Investment Portfolio; Recruitment; Surveys; Managerial Roles; Service Operations; Relationships; Service Industry;

    Citation:

    Sahlman, William A. "What Do Venture Capitalists Do?" Harvard Business School Background Note 288-015, September 1987. View Details
  133. Smartfood

    Contains a description of a major financing decision confronting the management and advisors of Smartfood, Inc., a company which hopes to market a cheese flavored popcorn product. The primary pedagogic objective is to teach students about matching the financing plan with the nature of the opportunity.

    Keywords: Venture Capital; Financing and Loans; Financial Strategy; Corporate Entrepreneurship; Market Entry and Exit; Decision Choices and Conditions; Financial Management; Food and Beverage Industry;

    Citation:

    Sahlman, William A. "Smartfood." Harvard Business School Case 286-064, January 1986. (Revised December 1986.) View Details
  134. CML Group, Inc.: Going Public (B)

    Contains a description of some issues confronting management of CML Group as the company progresses toward making an initial public offering. Among the issues and topics addressed in the case are: considerations in choosing an underwriting team, the initial public offering market; IPOs as a mechanism for private investors to harvest their investment; and short-term management reactions to changing conditions in the stock market.

    Keywords: Business or Company Management; Initial Public Offering; Financial Markets; Financial Strategy; Planning; Cost vs Benefits; Strategy; Entrepreneurship; Consumer Products Industry; Retail Industry;

    Citation:

    Sahlman, William A. "CML Group, Inc.: Going Public (B)." Harvard Business School Case 285-092, April 1985. (Revised September 1986.) View Details
  135. CML Group, Inc.: Going Public (A)

    Describes a series of decisions confronting Charles Leighton, co-founder and chairman of the CML Group. CML is a successful participant in the leisure time industry with two lines of business: specialty retailing and recreational consumer products. The key issues in the case are: 1) Should CML Group go public? and 2) How should management select an investment banking team? In order to address these issues, the students will have to understand the strategy and performance of CML, and assess the costs and benefits of going public in that context. Then, they will have to develop a strategy for selecting an underwriting team consistent with their analysis of the first issue.

    Keywords: Valuation; Going Public; Strategy; Business or Company Management; Cost vs Benefits; SWOT Analysis; Investment Banking; Financing and Loans; Planning; Corporate Finance; Retail Industry; Consumer Products Industry;

    Citation:

    Sahlman, William A. "CML Group, Inc.: Going Public (A)." Harvard Business School Case 285-003, July 1984. (Revised September 1986.) View Details
  136. Peter Wendell

    Contains a description of a decision confronting an employee of IBM in late 1981. Should he leave IBM to become head of a new venture capital fund which will specialize in technology investments? The case is designed to expose students to the nature of the opportunity confronting venture capitalists. The students will have to assess the fit between Peter Wendell, the particular opportunity, and the terms being offered.

    Keywords: Personal Development and Career; Jobs and Positions; Opportunities; Valuation; Decision Choices and Conditions; Resignation and Termination; Venture Capital; Financial Services Industry; Computer Industry;

    Citation:

    Sahlman, William A. "Peter Wendell." Harvard Business School Case 286-008, September 1985. (Revised January 1986.) View Details
  137. Note on the Microcomputer Software Industry--January 1982

    Contains a history of the microcomputer software industry from the mid-1970s through early 1982. During that period growth was explosive. Many new companies were formed. However, the eventual structure of the industry was not yet clear. No truly dominant firms had appeared. The note is intended to provide background information on Lotus Development Corp. That case contains a description of the strategy and financing of a producer of software. The note could also be used as a basis for discussion of the evolution of industries per se.

    Keywords: Industry Growth; Business Strategy; Software; Computer Industry;

    Citation:

    Sahlman, William A. "Note on the Microcomputer Software Industry--January 1982." Harvard Business School Background Note 285-095, January 1985. (Revised November 1985.) View Details
  138. CML Group, Inc.: Going Public (C)

    Contains a description of some issues confronting management of CML Group. They have decided to go public, have selected an underwriting team, and must make final decisions about the size, composition and pricing of the issue. Because stock prices have fallen since the decision to go public was made, the company is faced with the prospect of lowering the number of shares to be sold, lowering the offering price, or withdrawing the issue altogether. Can be handed out at the end of class discussion of CML Group, Inc.: Going Public (B).

    Keywords: Initial Public Offering; Going Public; Problems and Challenges; Consumer Products Industry; Retail Industry;

    Citation:

    Sahlman, William A. "CML Group, Inc.: Going Public (C)." Harvard Business School Case 286-009, August 1985. View Details
  139. Business Research Corp. (B)

    Contains a description of a set of related decisions confronting the management and directors of Business Research Corp. (BRC) in April of 1984. BRC needs more capital to finance continued development of the market for a full-text database comprised of Wall Street research and to finance a new business opportunity entailing electronic delivery of Wall Street research to institutional investors. However, in order to attract new money, the capital structure of the company must be changed. The pedagogic objectives in the case include: exposing students to the consequences of certain early stage financing decisions; raising the issue of conflict of interest among various stakeholders; and exposing students to the necessity for convergent iteration and flexibility in business plans.

    Keywords: Decisions; Finance; Capital Structure; Capital; Goals and Objectives; Conflict of Interests; Business Plan; Financing and Loans; Ethics;

    Citation:

    Sahlman, William A. "Business Research Corp. (B)." Harvard Business School Case 285-090, February 1985. View Details
  140. Business Research Corp. (A)

    Contains a description of a decision confronting an entrepreneur: which of two investment proposals should he accept to fund the creation and marketing of a database that comprises the full text of research reports produced by Wall Street investment banking firms? The teaching objectives are: to expose students to the people/opportunity/deal analytical framework; to focus on understanding the financial and other implications of deal terms; and to force the students to make a decision based on their analysis.

    Keywords: Strategy; Cost vs Benefits; Valuation; Investment Banking; Negotiation Participants; Negotiation Deal; Financing and Loans; Financial Strategy; Corporate Finance; Service Industry;

    Citation:

    Sahlman, William A. "Business Research Corp. (A)." Harvard Business School Case 285-089, January 1985. View Details
  141. Del Norte Paper Co. (C)

    Designed to serve two roles: first, it provides a reasonably comprehensive description of an ongoing capital budgeting system for the international operations of a large American company. Second, it allows the student to focus upon and critically analyze a series of specific complaints about the system which have been voiced by the management of two of the firm's foreign subsidiaries.

    Keywords: Capital Budgeting; International Relations; Globalized Markets and Industries; Goals and Objectives; Service Delivery; Business Subsidiaries; Performance Evaluation; Performance Expectations; Financial Services Industry; Pulp and Paper Industry;

    Citation:

    Sahlman, William A. "Del Norte Paper Co. (C)." Harvard Business School Case 177-036, September 1976. (Revised January 1977.) View Details
  142. Del Norte Paper Co. (A)

    Deals with a transfer pricing problem in a complex, international situation. A broad range of issues are present in the case, or are needed for a thorough case analysis. Such issues include: relevant costs; the appropriateness of profit centers; the appropriateness of decentralization; international funds transfers; and the measurement of integrated profit.

    Keywords: International Accounting; Cost Management; Business Divisions; Profit Sharing; Profit;

    Citation:

    Sahlman, William A. "Del Norte Paper Co. (A)." Harvard Business School Case 177-034, September 1976. View Details
  143. Del Norte Paper Co. (B)

    Serves two roles: first, provides a reasonably comprehensive description of an ongoing budgeting and reporting system for the international operations of a large American company. Second, allows the student to focus on and critically analyze a series of specific complaints about the system which have been voiced by the management of two of the firm's foreign subsidiaries.

    Keywords: International Accounting; Financial Reporting; Budgets and Budgeting; United States;

    Citation:

    Sahlman, William A. "Del Norte Paper Co. (B)." Harvard Business School Case 177-035, September 1976. View Details