• Analyzing the financial statements of the world's largest retailer: Wal-Mart

      De Maeseneire, Wouter; Luypaert, Mathieu (2010)
      This case is intended for an introductory or main course on Financial Statement Analysis. It may also be useful within a Corporate Finance / Financial Management course. After a class on financial statements and liquidity, profitability and solvency ratios - and some brief examples discussed by the lecturer - students should be capable of making a financial analysis of Wal-Mart. Students can be asked to make this analysis in class, or to prepare the case outside the classroom, and to present it. Ideally, the case work is conducted in groups of 4 to 6 students, and it typically takes between 1 to 1.5 hours (for the analysis itself - obviously, drafting a written report or presentation is more time consuming). The Wal-Mart case is aimed at both undergraduate and graduate students, and for general management programmes / MBAs as well as finance students - obviously, for the latter group, a much more fine-grained analysis, extensive discussion and adequate linking among various financials and between the numbers and Wal-Mart's business is required. Evidently, the lecturer should highlight many more details in a class of finance students.
    • Apple: time to think different about cash

      De Maeseneire, Wouter; Maertens, Maxime; Deschepper, Thomas (2013)
    • Berendsen Island

      Bisselink, Rick; Roodhooft, Filip; Stouthuysen, Kristof; Teunis, Ineke (2015)
    • Cadbury Schweppes (C): The performance management process

      Haspeslagh, Philippe; Slagmulder, Regine; Bloemhof, M. (2003)
      This is the third of a three case series. The (A) case describes the situation of Cadbury Schweppes (CS) and its sugar confectionery business, in a state of 'satisfactory underperformance' in which past strategies and practices make it hard for new management to initiate change in this widely respected company. The (B) case shows how from 1997 to 1999 John Sunderland, the new CEO and a new divisional manager used value based management (VBM) as a vehicle for transforming respectively the company and the sugar confectionery division with strong emphasis on people and leadership practices. The (C) case describes how CS' performance management system was redesigned in line with the Managing for Value (MfV) philosophy. It illustrates the new management performance process in action in the beverages business in Spain, where the country manager is faced with major competitive challenges. The immediate purpose of the Cadbury Schweppes series is to allow an informed discussion on the use and implementation of value based management, from a broader managerial rather than the typical financial perspective. The broader purpose is to illustrate how VBM can lead to corporate transformation and a sharpening of leadership practices in large firms. The series further describes how the design of the performance management system supports the implementation of MfV.
    • Case Basic Textiles

      Manigart, Sophie (2008)
      On 15 December 2007, Sammy Lasseel was facing an important decision that could change his life, but he had to act quickly. He joined Basic Textiles last year as CEO, with an option to buy the company within the year. The current shareholders have given him an ultimatum: Sammy had the opportunity to buy the company for 4 million euros, but he had to decide before Christmas. If he declined their proposal, he would be fired as CEO as from January 2008 onwards. Sammy first had to decide whether he was willing to pay 4 million euros for the shares. If so, how could he finance the takeover?
    • Case Pizza Hut A: the management buy-out of Pizza Hut Belgium

      De Vriese, Carolien; Manigart, Sophie (2007)
      This is part of a case series. In 2000, Tricon Restaurant, the parent company of Pizza Hut, decided to spin off all its non-strategic businesses, including Pizza Belgium. The CEO of Pizza Belgium, Stef Meulemans, was afraid of the consequences of a trade sale to an international player. He therefore attempted to put together a management buy-out. Stef Meulemans could invest 125,000 euros of his own in the transaction. Although he didn't know yet how the deal would be financed or how much equity would be needed, it was quite likely that a financial partner with additional funds would be needed. The fraction of the shares that Stef Meulemans could acquire would depend on the amount of equity required from the private equity investor and his own negotiation and deal structuring skills.
    • Case Pizza Hut B: the exit of the buy out fund

      De Vriese, Carolien; Manigart, Sophie (2007)
      This is part of a case series. At the end of 2004, about four years after the management buy-out (MBO), the private equity investor Buy Out Fund (BOF) started preparing for the exit. Within two to three years, BOF would sell its Pizza Belgium shares. Stef Meulemans knew that he would probably have to sell his shares too. It could not be excluded that the buyer would install his own management team, and he would definitely not be a shareholder anymore. That was why he seriously considered taking the plunge for the second time. A secondary buy-out would be difficult, but he had no other option if he wanted to remain a shareholder of Pizza Belgium. This time five other managers were eager to join the MBO. Stef was willing to invest the proceeds of the sale of his 15% stake. The other managers could invest 50,000 euros each. Stef and the other managers had to make an interesting offer to BOF. Stef knew they would have to attract a new private equity player, but one thing Stef knew for sure: he wanted to be the majority shareholder.
    • Case study: Deal making in troubled waters: the ABN AMRO TAKEOVER

      Cossin, Didier; Keuleneer, Luc (2009)
      In a letter to ABN AMRO in February 2007, TCI, a British hedge fund with a small stake in ABN AMRO, stated: 'We believe that it would be in the interests of all shareholders, other stakeholders and ABN AMRO for the Managing Board of ABN AMRO to actively pursue the potential break up, spin-off, sale or merger of its various businesses (or as a whole)'. Eight months later, after a head-to-head battle with Barclays, the bank was finally sold to a Royal Bank of Scotland-led consortium, which included Banco Santander of Spain and Fortis, the Belgo-Dutch group. It was the largest financial services transaction ever and the first time that bidders had attempted to break up a large lender. This case looks at the events that led up to the takeover and examines some of the strategic decisions of the recent past which may have triggered the process. It discusses the financing and timing of the deal in the turbulent financial markets of 2007 and raises questions about the future. What were the risks of splitting the bank? Could this complex task be achieved successfully? Learning objectives: This integrative case gives participants an overview of the different aspects of a takeover: finance and control, integrated risk management, strategy. Issues for discussion include: (1) strategic lessons for the future of banking in Europe and worldwide, and (2) strengths and weaknesses of the two bids regarding valuation, synergies, timing, deal structure, concerns regarding integration planning and implementation.
    • Causes of company failure and failure paths: The rise and fall of a producer of industrial foils and bags

      Ooghe, Hubert; Waeyaert, Nick (2005)
      One of the prevalent concerns in present times, for both management academics and practitioners, relates to the principles which determine corporate success and failure. Although many models discover early symptoms of failure by using financial information, there is a lack of a deeper insight into the real causes of company failure and into the way they influence each other. The symptoms one can discover in the annual accounts are the consequence of a process that generally started long before. This case study of IFoil, once a leading European producer of industrial foils, biodegradable packing materials and bin bags, describes the rise and fall of a firm with an ambitious but risky strategy. This strategy proceeded from a management buy-out in 1996 and ended with a failure in 2003. In the case, we aim to analyse and describe IFoil's causes of failure and failure path in detail.
    • Causes of company failure and failure paths: The rise and fall of a producer of industrial foils and bags - Teaching note

      Ooghe, Hubert; Waeyaert, Nick (2005)
      One of the prevalent concerns in present times, for both management academics and practitioners, relates to the principles which determine corporate success and failure. Although many models discover early symptoms of failure by using financial information, there is a lack of a deeper insight into the real causes of company failure and into the way they influence each other. The symptoms one can discover in the annual accounts are the consequence of a process that generally started long before. This case study of IFoil, once a leading European producer of industrial foils, biodegradable packing materials and bin bags, describes the rise and fall of a firm with an ambitious but risky strategy. This strategy proceeded from a management buy-out in 1996 and ended with a failure in 2003. In the case, we aim to analyse and describe IFoil's causes of failure and failure path in detail.
    • Customer churn prediction using machine learning and customer lifetime value analysis at Eurotel

      Stouthuysen, Kristof; Verdonck, Tim; Van der Schraelen, Lennert; Decorte, Thomas; Brié, Bjarne (2021)
      Every CFO should invest in getting to know the organisation’s customers. After all, building long-term and valuable customer relationships is an important driver of value creation. This case study explores how machine learning and predictive analytics can be used to develop a deeper understanding of customer behaviour and to enhance customer profitability. The case study consists of two parts: part A, customer churn prediction using machine learning, and part B, customer lifetime value analysis. In part A, the focus is on using machine learning to predict customer churn at Eurotel, a Belgian telecommunications start-up. The participants will learn how to pre-process raw customer data and will use different modelling techniques to predict customer churn. Furthermore, they will learn how to select the right model based on business relevance and performance. In part B, the participants will use the insights derived in the first part to analyse the customer lifetime value of the different Eurotel customers. This will serve as input for a marketing analysis. The goal is to determine which customer and product segments of Eurotel are most valuable and to strategically select the right marketing campaigns to target those segments. The participants will learn how to implement a customer lifetime value analysis and how the resulting information can be used to design an effective marketing campaign. The participants will also learn how they can implement the analysis in python.
    • Customer lifetime value analysis at COMTEL

      Van Gool, J.; Roodhooft, Filip; Kemseke, P. (2010)
      By analyzing this case, students learn to apply management accounting and cost control concepts in practice. They will also think independently, creatively and in a structured way on the development of marketing strategies. The proposed questions require the students to calculate customer lifetime values for the acquisition of new customers across product segments, calculate up-sell and win-back potential, prioritize which segments should be targeted with promotional campaigns and assess the use of multiple marketing campaigns for the selected segments
    • Customer profitability analysis and value based management at Barclays Bank

      Slagmulder, Regine; Mukherjee, J. (2004)
      In response to the intensified competition in the banking industry, Barclays adopted a Value Based Management (VBM) programme to align decision making at all levels in the organisation with the interests of its shareholders. Under the umbrella of this VBM programme the Bank introduced a new approach to identifying and effectively managing its high-value customers. The case shows how the new customer value measurement tool had a significant impact on managerial decision making and how it was supported by value-based sales incentives. The purpose of the case is to provide an illustration of customer profitability analysis in the context of a 'managing for value' initiative at a leading European bank. The case shows how the Bank's external financial goal of top quartile shareholder return was translated into an internal focus on economic profit, which in turn was cascaded to the front line through value-based sales targets. The objective of the case discussion is to explore the benefits and challenges of adopting a value-aligned performance measurement tool to help the salesforce identify high-value customers and take action to boost customer profitability and create shareholder value.
    • Digi-Tec: The VC investor exit decision

      Paeleman, Ine; Manigart, Sophie; Slagmulder, Regine (2019)
      Digi-Tec was a growing ICT firm and achieved growth both organically and through mergers and acquisitions (M&As). The large number of shareholders had divergent goals and visions for the future. In order to ensure further growth, two main shareholders searched for an external investor to buy out the others and thereby align and strengthen its governance. In 2011 the Spain-based private equity firm SRIC invested in Digi-Tec. This case documents the interactions between the external investor and the management. An exit opportunity arose much earlier than expected. The investment manager is faced with the question whether it is optimal to exit already after three years, or rather to stay on board for some more years as initially planned.
    • Eandis: Financing the rollout of smart meters in a regulated environment

      Roodhooft, Filip; Momber, Ilan; Meeus, Leonardo; Hadush, Samson Yemane (2019)
      n 2014, Eandis System Operator CVBA (Eandis), a low- and medium-voltage power distribution system operator (DSO) in Belgium, had an ambitious plan for investing in a smart metering infrastructure, but the regulatory context was uncertain. The company had been operating in a regulated monopoly characterized by a cost-plus pricing regime. The regime allowed the company to recover its costs through the tariffs it charged grid users for access to the electricity distribution network. In recent years, the regime had motivated the company to invest in infrastructure; however, the cost-plus regime was about to be replaced by a new type of regulation based on incentives and the DSO's performance. Under the new regulation, DSOs could propose investments to the regulator, who then approved the investments based on a cost-benefit analysis. In this context, Eandis must decide whether to continue with its plan to invest in smart metering and, if so, how to structure the investment to appeal to the equity investors.