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Don’t Let Your Company Get Trapped by Success

Harvard Business Review

In today’s dynamic business environment, leaders of large established companies need more than ever to run and reinvent the business at the same time. Companies in the success trap over-exploit their current business models and fail to renew or grow future growth options. Our research shows that U.S.

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What Private Equity Investors Think They Do for the Companies They Buy

Harvard Business Review

PE firms typically buy controlling shares of private or public firms, often funded by debt, with the hope of later taking them public or selling them to another company in order to turn a profit. But how do PE firms decide which companies to buy? We classify private equity as buyout or growth equity investments in mature companies.

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Beware of Short-term Management, Not the Short-term Investor

Harvard Business Review

Not surprisingly, some investors would seek to benefit from the combination of lower transaction costs and opportunity to make money from the fluctuations in prices. Moreover, I fail to see any argument why such short-term traders, by themselves, destroy value for the economy as a whole.

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How to Quantify Sustainability’s Impact on Your Bottom Line

Harvard Business Review

Specifically, our analysis found that the net benefits to ranchers ranged from $18 million to $34 million (12% to 23% of revenues) in net present value projected over 10 years. For slaughterhouses and retailers (Brazilian operations), we also projected positive benefits: $20 million to $120 million (0.01% to 0.1% of revenues).

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

Each of the new companies offers the hope of transforming the performance of the U.S. operating rooms, recovery floors, emergency department), and ancillary departments (e.g., Problem 2: Rigid annual operating budgets. Gillian Blease/Getty Images. Nearly 800 digital health startups were funded in 2017, an all-time high.

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Rethinking Valuation So You Don't Miss a Good Deal

Harvard Business Review

We have constructed a framework that allows an acquiring company to avoid the bias in valuation that often leads to wrong conclusions. The other is a process called Opportunity Engineering (OE) that instills a different way to look at value. We call this the Opportunity Value (OV) of an asset.

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What Shareholder Value is Really About

Harvard Business Review

CEOs need to understand the principles of shareholder value and why they are so important in judging difficult trade-offs, learn about the relationship between the financial performance of the company and the company's stock, and communicate clearly and act appropriately when expectations gaps open.