Product details

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Published by: Harvard Business Publishing
Originally published in: 1990
Version: 2 November 2004

Abstract

Documents the organizational changes that took place at OM Scott & Sons Co in response to their leveraged buyout. Provides the opportunity for students to discuss the effects of high leverage on management decision making, and the differences between operating as a small subsidiary of a large conglomerate and as a free-standing company. Focuses on the role of the LBO sponsor in the management of the company, the role of restrictive debt covenants, and the effect of changes in the compensation system at the company.
Location:
Industry:
Size:
USD200 million sales
Other setting(s):
1986

About

Abstract

Documents the organizational changes that took place at OM Scott & Sons Co in response to their leveraged buyout. Provides the opportunity for students to discuss the effects of high leverage on management decision making, and the differences between operating as a small subsidiary of a large conglomerate and as a free-standing company. Focuses on the role of the LBO sponsor in the management of the company, the role of restrictive debt covenants, and the effect of changes in the compensation system at the company.

Settings

Location:
Industry:
Size:
USD200 million sales
Other setting(s):
1986

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