Marc Davis and Harriet Burns, two employees at Harmonic, have the opportunity to purchase the business from its creator. As well-informed insiders who understand the business, Davis and Burns consider the advantages of ownership far outweigh the hazards. Arranging funding proves more challenging, while the choice to buy Harmonic is not difficult for them.
The business is preparing to launch a new hearing aid merchandise and Davis and Burns desire the financing package to contain the additional capital required to complete both the development and the launch. Two financing choices are presented: one is virtually all debt-financed, while the other all equity. Pupils must assess the two financing alternatives, determine the advantages and disadvantages, and advocate the most suitable choice.
Publication Date: 03/18/2011
This is just an excerpt. This case is about Finance
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