Documents the organizational changes that have occurred in the OM Scott & Sons Co. in response to their leveraged buyout. Provides an opportunity for students to discuss the impact of high leverage on managerial decision-making, and the differences between operating as a small subsidiary of a large conglomerate, and as a free-standing company. Focuses on the role of the LBO sponsor in the company's management, the role of debt covenants, and the impact of changes in compensation in the company. "Hide
by George P. Baker and Karen H. Wruck, Toby Stewart Source: Harvard Business School 12 pages. Publication Date: March 21, 1990. Prod. #: 190148-PDF-ENG