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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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The Largest Risk (and Opportunity) Investors Are Ignoring

Harvard Business Review

A key target for Ceres’ work, and the main audience at the conference, is the group of institutional investors who manage tens of trillions of dollars in assets for long-term performance. ” The value of the companies owning and managing those assets, the logic goes, will plummet. Economy Finance Sustainability'

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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. Tight convergence on a best practice may not be necessary, then, in this realm of management.

CAPM 14
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Why We Need to Update Financial Reporting for the Digital Era

Harvard Business Review

This notion, that risk is a desirable feature, can seem like sacrilege to anyone who’s taken an introductory finance course. So, investors, and therefore managers, might be adjusting their approach to risk accordingly. So, investors, and therefore managers, might be adjusting their approach to risk accordingly.

Report 8
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What Markets Do and Don’t Get About Innovation

Harvard Business Review

Sustaining innovation inhabits the world of incremental change, deliberate strategy , and most financial and management theory. Without theory to tell us how the rules are changing, many tools of management and finance seem to break down. Disruptive innovation Finance' New-market disruption is more complex.

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What is the importance of pre-money valuation For Your Business?

Strategy Driven

With the contribution of cash to the balance sheet of a business through the shareholder value, the post-money value becomes stronger due to the additional cash earned. A pre money valuation is crucial for financing as eventually, it can decide if an entrepreneur has the starry, strong and bad, or sometimes has no way out.

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Hospital Budget Systems Are Holding Back Innovation

Harvard Business Review

A second, more radical solution is to create budgets and authority for a service line or integrated practice unit (IPU) that manages a patient’s entire treatment for a high-volume medical condition. The IPU is an essential component of the value-based care model advocated by Harvard Business School’s Michael Porter.