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

Harvard Business Review

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. Rather, they rely on internal rates of return and multiples of invested capital.

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How Banks Can Compete Against an Army of Fintech Startups

Harvard Business Review

In a recent survey from Javelin Research, 56% of SMEs indicated a desire for better digital banking tools. Banks’ cost of capital is typically 50 basis points or less. These low-cost and reliable sources of funds are from taxpayer-insured deposits and the Federal Reserve’s discount window.

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6 Digital Strategies, and Why Some Work Better than Others

Harvard Business Review

Based on our recent worldwide survey of 2,000 incumbent companies across all major industries and countries, we estimate that the average return on incumbent digital initiatives is below 10% — barely above the cost of capital.

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The Comprehensive Business Case for Sustainability

Harvard Business Review

This can disrupt a firm’s ability to operate on schedule and budget. Of the respondents, 72% said that climate change presents risks that could significantly impact their operations, revenue, or expenditures. ” Improving risk management.

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Get the Strategy You Need — Now

Harvard Business Review

Unfortunately, nearly eight in ten executives surveyed by McKinsey describe the strategic-planning processes at their companies as more geared to confirming existing hypothesis than to testing new ones. Good analysis in the hands of smart managers does not automatically yield great strategy. There are techniques to fix that problem.

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Why the 21st Century Will Belong to Family Businesses

Harvard Business Review

As a result, family equity can come at a very low cost of capital, where businesses can meet the annual needs of their shareholders without having to worry about paying back the principal. ” There is often a personal connection between the family and the communities in which it operates; reputations matter to families.

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How CMOs Can Get CFOs on Their Side

Harvard Business Review

Just 36 percent of CMOs, for example, have quantitatively proven the short-term impact of marketing spend, according to the 2013 CMO Survey (and for demonstrating long-term impact, that figure drops to 32 percent). Moreover, the previous year’s survey showed that 63 percent of projects do not use analytics to inform marketing decisions.

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