The head of the Carlson stands to benefit substantially in financial terms, when a private equity firm awarded the contract for the division. The division is in the early stages of a performance turnaround, with only three quarters of earnings growth and audited figures. The department has a well-developed plan to improve performance and is confident that the operating result is expected to double within five years. If this is the case, and if the private equity firm is successful in buying the division at … Read more »

The head of the Carlson stands to benefit substantially in financial terms, when a private equity firm awarded the contract for the division. The division is in the early stages of a performance turnaround, with only three quarters of earnings growth and audited figures. The department has a well-developed plan to improve performance and is confident that the operating result is expected to double within five years. If this is the case, and if the private equity firm is successful in buying the business to its target, can the department heads from the investment of $ 60 million five years. How much to strategic buyers and the parent company disclose in relation to the turnaround plans and prospects? What are the legal and ethical requirements?
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Thomas R. Piper
Source: Harvard Business School
3 pages.
Release Date: 12 January 2004. Prod #: 304083-PDF-ENG
Bob Holgrom and the buyout of the Carlson Department HBR case solution

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