Describes the problems in the design and evaluation of financial contracts between users and providers of capital and between companies and employees involved. Introduced a simple conceptual framework and some critical questions addressed: 1) How is assigned to the cash? 2) How is my risk? and 3) What are the incentives for all parties involved in the matter? The emphasis in the note must be on providing the reader to a series of questions addressed in the design and evaluation of any offers. Created for us … Read more »

Describes the problems in the design and evaluation of financial contracts between users and providers of capital and between companies and employees involved. Introduced a simple conceptual framework and some critical questions addressed: 1) How is assigned to the cash? 2) How is my risk? and 3) What are the incentives for all parties involved in the matter? The emphasis in the note must be on providing the reader to a series of questions addressed in the design and evaluation of any offers. Created for use in Entrepreneurial Finance. Can be used to read general background information or as a job for a day dedicated to the discussion of the offers to be made available.
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William A. Sahlman
35 pages.
Publication Date: Aug 17, 1987. Prod #: 288014-PDF-ENG
Note on Financial Contracting: “Deals” HBR case solution