Explores strategies, financing and management of a new type of organizational form, called Leveraged Build-Up of its inventor, Kohlberg, Kravis, Roberts & Co, the company makes leveraged acquisitions of small publishing companies, managing them in a very decentralized way. He has increased dramatically between 1989 and 1993. K-III organization and management structure combines many features borrowed funds with the venture capital companies. Each operating company is highly leveraged, the achievement of the discipline of debt and free cash flow to prevent problems that otherwise plague pubishing companies. At the same time, top management's mandate is to acquire companies that require constant infusions of money. Explores the tension between the debt obligations and the demand for additional funding. "Hide
by George P. Baker, Nicola Bamford Source: Harvard Business School 20 pages. Publication Date: November 7, 1994. Prod. #: 295067-PDF-ENG
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