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• Case | HBS Case Collection | August 2019

  Helena Divišová

  Richard S. Ruback and Royce Yudkoff

  Helena Divišová (MBA, 2016) decided to return home to the Czech Republic soon after graduation to be near her father who became seriously ill soon after she started HBS. She had considered leaving HBS immediately to help run his business. But her father, who grew up in the Czech Republic when travel and overseas educational opportunities were severely limited, would not allow her to abandon her studies. Instead, Divišová’s husband, Pavel Diviš, returned to help with the family business while she completed her MBA. She also gave birth to their first child in April, just before graduation. And so, the decision to return to the Czech Republic seemed obvious; her immediate family would be together and she would be able to be with her extended family during her father’s illness.

  Keywords: Entrepreneurship; Personal Development and Career; Czech Republic;

  Citation:

  Ruback, Richard S., and Royce Yudkoff. "Helena Divišová." Harvard Business School Case 220-020, August 2019.  View Details

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• Background Note | HBS Case Collection | August 2019

  Analytical Tools in Private Equity: Return Bridge

  Victoria Ivashina and Abhijit Tagade

  This note explains the rationale and derivation behind “return bridge,” a key analytical tool used in the private equity industry to understand sources of value-add. The note elaborates on the advantages and the shortcomings of the return bridge.

  Keywords: return bridge; Private Equity; Value Creation; Analysis;

  Citation:

  Ivashina, Victoria, and Abhijit Tagade. "Analytical Tools in Private Equity: Return Bridge." Harvard Business School Background Note 220-019, August 2019.  View Details

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• Case | HBS Case Collection | August 2019

  Systems Design West

  Richard Ruback and Royce Yudkoff

  Jenn Braus (HBS 2013) was half-way through the 90-day exclusivity period for her proposed acquisition of Systems Design West (“SDW”). She had completed her business and accounting due diligence. Just as she was about to ask her lawyer to begin drafting the purchase agreement, she received a call from the seller that the company had reached agreement with a large new client that would increase revenue by roughly 20%. The seller asked that the success be reflected in an increased offer price, although he had not specified the amount of the increase.
  Braus needed to decide on an appropriate response. Should she stand fast? In her mind, she had already agreed to pay a premium price for SDW, with a higher than typical multiple of EBITDA. Part of her rationale for the high multiple was that she believed the company had significant growth potential. Paying a higher price in response to the new customer seemed like paying twice for the growth. However, because the new customer was so large, Braus imagined that it would nudge the run rate EBITDA for SDW to about $1 million, eliminating a concern she had about the small size of the business. If she decided to negotiate a higher price, how much an increase was appropriate? Simply applying historical margins would imply that a 20% increase in revenue would correspond to a 20% increase in price. Alternatively, it could be more as margins improved with operating leverage or it could be less if significant fixed costs were required to on-board the new customer. Additionally, Braus was concerned that a new customer was inherently riskier than SDW’s typical customer that had a history of recurring revenue.

  Keywords: Acquisition; Price; Negotiation Offer; Decision Making;

  Citation:

  Ruback, Richard, and Royce Yudkoff. "Systems Design West." Harvard Business School Case 220-004, August 2019.  View Details

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