Case | HBS Case Collection | January 1985

Business Research Corp. (A)

by William A. Sahlman

Abstract

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;

Format: Print 26 pages Find at Harvard

Citation:

Sahlman, William A. "Business Research Corp. (A)." Harvard Business School Case 285-089, January 1985.

Related Work

  1. Case | HBS Case Collection | February 1985

    Business Research Corp. (B)

    William A. Sahlman

    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
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About the Author

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William A. Sahlman
Baker Foundation Professor, Dimitri V. D'Arbeloff - MBA Class of 1955 Professor of Business Administration, Emeritus
Entrepreneurial Management

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