"Doctor My Eyes"--The Acquisition of Bausch & Lomb by Warburg Pincus (B)

The B Case of "Dr. My Eyes" provides the answer as to what happened after the ending fact pattern in Case A and the imminent choices faced by the protagonist in the primary case. At the end of the Case A, Bess Weatherman of Warburg Pincus, must chose one option of two very different alternatives as to which direction to take Bausch & Lomb. Essentially, she can either stay the course or terminate the management team she originally selected to run Bausch & Lomb only two years beforehand. At the end of Case A, students are asked to vote as to which alternative she should select. They are asked when is “good, good enough?” They invariably vote to stay the course. She did not. She chose to bring in new management headed by Brent Saunders. The remainder of the B Case illustrates the results he generated. Ultimately Bausch & Lomb was sold to Valeant for an IRR of 17.6% for a MOIC of 1.6x. The B case answers the question whether “good is good enough”.