Peter Jepsen, a freshly baked MBA, has a furniture hardware manufacturing business using debt and equity, the investors in a very short time is bought to trigger banking covenants due to poor financial performance. The former owners are more involved in the business, handling key customers and promotes a healthy earn-out and some favorable completion of the transaction adjustments and Jepsen holds the wisdom to do with him. He also has to avoid an illegal practice, discovered … Read more »

Peter Jepsen, a freshly baked MBA, has a furniture hardware manufacturing business using debt and equity, the investors in a very short time is bought to trigger banking covenants due to poor financial performance. The former owners are more involved in the business, handling key customers and promotes a healthy earn-out and some favorable completion of the transaction adjustments and Jepsen holds the wisdom to do with him. In addition, he has an illegal practice, the duties to avoid for years discovered and tolerated by the owner now. He has taken steps to bring on new employees and outsource to reduce costs made, but the faltering economy lowers its revenue. He must decide how to manage their banking relationships, the caliber of the staff he needs and respond to the decline in revenue and at the same time the confidence of his board.
About to break the bank covenants, Peter Jepsen has to deal with a controversial former owners to improve profitability and staff accordingly all while maintaining credibility with its investors in the furniture hardware company, which he did in less than a year for possession has.
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from
Howard H. Stevenson,
Michael J. Roberts,
James M. Sharpe
Source: Harvard Business School
16 pages.
Release Date: 23 July 2012. Prod #: 813 046 PDF-ENG
Peter Jepsen HBR case solution