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

Harvard Business Review

What have been less explored are the specific actions taken by private equity (PE) fund managers. In a survey of 79 PE firms managing more than $750 billion in capital, we provide granular information on PE managers’ practices and how firms’ strategies relate to the characteristics of their founders.

CAPM 8
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Still Many Ways to Skin a Capital Cost

Harvard Business Review

Estimating the rate at which to discount the cash flows — the cost of equity capital — is an integral part of the exercise, and the choice of rate has a significant effect on estimates of a project's or a company's value. One of the architects of the survey, Mark Scott, is also one of its beneficiaries.

CAPM 13
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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

The audience for such innovation wants to be receptive: A recent American Hospital Association (AHA) survey found that 75% of senior hospital executives endorsed the importance of digital innovation. Each of the new companies offers the hope of transforming the performance of the U.S. health care system.

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Why Sit on All that Cash? Firms Uncertain on Cost of Capital

Harvard Business Review

AFP conducted the Cost of Capital Survey in October 2010 and received answers from 309 chief financial officers, treasurers, vice presidents-finance, and assistant treasurers. Fully 79 percent of companies, including 91 percent with annual revenues greater than $1 billion, use discounted cash flow techniques.