- 24 Nov 2010
- Working Paper
The valuation of forecasted cash flows can be an inaccurate process, especially when the forecasts are created by optimists who neglect to consider worst-case scenarios. In this paper, Harvard Business School professor Richard S. Ruback has developed methods of valuating forecasted cash flow when the predictions are biased upward.
- 25 Aug 2008
- Research & Ideas
Managers of the ABRY Fund V were so successful they had investors waiting to pour in an additional $3 billion. But to invest that much would require trade-offs that could jeopardize the chemistry that made the fund successful in the first place. Take the money or walk away? From HBS Bulletin. Key concepts include: The case highlights tensions in the private equity business between generating wealth for the firm's investment professionals and the investors in the firm—the so-called limited partners. Co-founder Royce Yudkoff declines the $3 billion investments, believing the best way to prosper over the long haul is to generate a high rate of return rather than increasing dollars under management. Closed for comment; 0 Comment(s) posted.