Read the following Harvard Business School case study:
Hardymon, G. F., Lerner, J., & Leamon, A. (2002, January 31). Martin Smith: May 2002.
Prepare a financial ratio and financial statement analysis.
Review the case study then develop an analysis report presentation. There is a “help” spreadsheet that can be used to assist in organizing and summarizing the issues. Spreadsheet tables can be pasted into a Microsoft Word document to highlight and summarize the main issues, but you should also include text discussion within your document that expands on the summary table you present.
Case study analysis:
1. Use the matrix within the help spreadsheet as a guide to develop a report in which you assess the three potential companies as investments. Discuss the risks and valuations issues that are apparent. Make a recommendation on one of these companies and make a clear, convincing argument for the choice.
2. Develop a PowerPoint presentation for the company that you recommend. The presentation should not have more than 6 slides exclusive of a title page and the slides should not be replicated from those within the case, although they certainly can cover similar issues. In other words, be original in forming a professionalized presentation that communicates key details that support your recommendation.
Present your case study analysis in Microsoft Word document format and the presentation in PowerPoint format.
All written assignments and responses should follow APA rules for attributing sources.
REV: APRIL 3, 2002
ANN K. LEAMON
Martin Smith: May 2002
Martin Smith gazed out the window of his Westport, Connecticut office overlooking the sun-
sparkling waters of Long Island Sound and sighed. Had things gone according to plan, he mused, he
would be scuba-diving in the brilliant blue Caribbean waters. Instead, he was working, or rather
delaying work by contemplating the temperature difference between the waters outside his window
and those of the Virgin Islands. Apparently, he was not the only one laboring on this Sunday
morning: the “bing” of the elevator sounded faintly in the background.
After weighing three different job offers from leveraged buyout firms as a second-year student at
the Harvard Business School, Smith had decided to accept a position at Newport Partners. Unlike
some of his less fortunate colleagues, he had had a number of offers from which to choose, as his
background had made him attractive to many buyout organizations. With a degree in economics
from the University of Pennsylvania’s Wharton School, he had joined the investment bank Goldman,
Sachs as an analyst in its corporate finance group. After two years, he had grown tired of the endless
parade of spreadsheets and joined a startup that helped mid-sized firms manage their financial
planning and strategy. Before this firm failed during the 2000-2001 Internet collapse, Smith had
worked closely with a number of chief financial officers in mid-sized firms, as well as investment
bankers and partners in private equity groups. The firm’s demise had given Smith the chance to leave
the business world to attend Harvard Business School and round out his skill set.
In assessing job offers, Smith had ultimately put a great deal of weight on the certification—or
“stamp of approval”—that working at an “old-line” group such as Newport would provide.
Newport Partners was a top tier buyout firm: within the private equity community, it had a strong
“brand name” and…