Citation:
Nanda, Ramana, William A. Sahlman, Robert White, and Hunter Ashmore. "Business Models Problem Set." Harvard Business School Exercise 816-016, August 2015. (Revised July 2020.) View Details|
Case HBS Case Collection March 1985 (Revised November 1988) Precision Parts, Inc. (A) |
Abstract
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.)
