The purpose of this case will be to introduce the subject of socially responsible investing from both the investor and investee perspectives. The pupils will walk away with an understanding of 1) how to value a portfolio company on a social/environmental assignment and on conventional financial criteria, and 2) what factors should be top of mind for a social venture considering taking an equity investment.
In 2007, Good Capital is ready to make its first growth equity investment in a for-profit social business and Selke is considering Better World Books as the company's principal objective. Selke must appraise whether the company is a financially sound investment and if its societal and environmental missions can be maintained upon a liquidation event. If Good Capital profits with the investment, Selke must additionally rework some of Better World Books' present procedures, including fine-tuning the philanthropic giving strategy that's the main part of its social mission.
PUBLICATION DATE: October 10, 2010 PRODUCT #: KEL526-HCB-ENG
This is just an excerpt. This case is about STRATEGY & EXECUTION
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