Publications
Publications
- August 2023
- HBS Case Collection
Raya Partners: Profitability and Purpose
By: Arthur Segel and Ephraim Mernick
Abstract
Raya Partners, a private equity firm, faces a crucial decision regarding Asa Specialty Coatings Company (ASCC). The dilemma involves shifting ASCC's manufacturing operations to Mexico, a move that would boost profitability and reduce emissions but result in significant layoffs in Vermont, impacting employees and the local community. Adrienne, Raya Partners' Chief Investment Officer, grapples with balancing financial gains, social responsibilities, and environmental considerations. The decision also tests Raya Partners' commitment to its ESG policy. Adrienne must devise a transparent communication strategy, explore fair severance packages, and consider ways to alleviate the financial burden. Ultimately, the choice made will define Raya Partners' values and shape ASCC's future.
Citation
Segel, Arthur, and Ephraim Mernick. "Raya Partners: Profitability and Purpose." Harvard Business School Case 224-014, August 2023.