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Case
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Reference no. 9-492-021
Published by: Harvard Business Publishing
Originally published in: 1991
Version: 15 November 1996
Length: 25 pages
Data source: Field research

Abstract

A Houston-based LBO firm makes two petrochemical acquisitions that benefit from improved industry conditions and improved organizational performance. The LBOs generate huge increases in value, creating problems for managers, who have large, undiversified equity holdings. The firm decides to sell one company after a year, and to take the other company public after two. Allows students to examine the causes of organizational change, the difficulties of managing success in closely held LBO companies, and the relative merits of various exit strategies.
Location:
Industry:
Size:
Large, 1,000 employees, USD1 billion revenues
Other setting(s):
1986-1988

About

Abstract

A Houston-based LBO firm makes two petrochemical acquisitions that benefit from improved industry conditions and improved organizational performance. The LBOs generate huge increases in value, creating problems for managers, who have large, undiversified equity holdings. The firm decides to sell one company after a year, and to take the other company public after two. Allows students to examine the causes of organizational change, the difficulties of managing success in closely held LBO companies, and the relative merits of various exit strategies.

Settings

Location:
Industry:
Size:
Large, 1,000 employees, USD1 billion revenues
Other setting(s):
1986-1988

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