December 2024
Case
HBS Case Collection

Balancing Returns and Responsibilities at Raya Partners

By: Arthur Segel, Ephraim Mernick, Derek C. M. van Bever and Olivia Barba

Format:Print
| Language:English
| Pages:17

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.

Keywords

Factories, Labs, and Plants; Communication Strategy; Private Equity; Job Cuts and Outsourcing; Corporate Social Responsibility and Impact; Mexico; Vermont

Citation

Segel, Arthur, Ephraim Mernick, Derek C. M. van Bever, and Olivia Barba. "Balancing Returns and Responsibilities at Raya Partners." Harvard Business School Case 325-068, December 2024.