The HLB Turnaround
Lynda M. Applegate
Harvard University - Entrepreneurial Management Unit
Harvard Business School
Harvard Business School, Global Research Group
November 18, 2009
Harvard Business School Entrepreneurial Management case no. 810-023
Ford Pearson has recently taken over as CEO of HLB, a Chicago-based product design and development firm (and once one of the largest in the business), to help turn it around after a series of crises that had seriously threatened its survival. Pearson has personally invested in the firm, re-organized many aspects of its operations and has hired a younger executive and turnaround expert, Andrew Macey, as COO to help him in the effort. Pearson and Macey have several options to consider: Should HLB raise $1 million in debt financing and focus on a turnaround or should it approach a private equity investor and raise an additional $4 million and pursue a more aggressive productivity improvement plus growth strategy? While they consider these options in September 2008, the credit markets are about to clamp shut as a global financial crisis is around the corner.
working papers series
Date posted: March 17, 2012
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