Case Notes/Answers
Case Solutions for ALLEN LANE by Howard Stevenson
Michael Roberts
Discussion Questions:
1. Evaluate Allen Lane and his search for a business.
— What did he do right?
— What did he learn as the process progressed?
— How have the years since Allen’s graduation from business school made him more or
less well-suited to running his own company?
2. How should Allen Lane value Plas-Tek?
3. How much should he bid? Why?
4. What conditions should he place on his bid?
5. How should he finance and structure the purchase?
, 5-385-080
REV: JANUARY 1989
TEACHING NOTE
Allen Lane
A lot more people sweat than perspire.
— Mike Todd
The Allen Lane case describes a man’s efforts to buy a business over a period of several years. The
case describes several failures and provides a number of valuable lessons, including:
— the pitfalls of attempting to purchase a business, including the legal and ethical aspects
— the potential sources of deals
— valuing a prospective purchase
— structuring a deal
Study Questions
1. Evaluate Allen Lane and his search for a business.
— What did he do right?
— What did he learn as the process progressed?
— How have the years since Allen’s graduation from business school made him more or
less well-suited to running his own company?
2. How should Allen Lane value Plas-Tek?
3. How much should he bid? Why?
4. What conditions should he place on his bid?
5. How should he finance and structure the purchase?
Pedagogical Overview
One approach is to spend a good portion of class time going over Allen Lane’s search, pushing
students to really try to get them to identify with him. Then when it comes time to evaluate Plas-Tek,
push students on how they feel about the deal. The “Allen Lane: Supplement” case (HBS No. 384-133)
provides an excellent example of how to structure a deal.
Case Solutions for ALLEN LANE by Howard Stevenson
Michael Roberts
Discussion Questions:
1. Evaluate Allen Lane and his search for a business.
— What did he do right?
— What did he learn as the process progressed?
— How have the years since Allen’s graduation from business school made him more or
less well-suited to running his own company?
2. How should Allen Lane value Plas-Tek?
3. How much should he bid? Why?
4. What conditions should he place on his bid?
5. How should he finance and structure the purchase?
, 5-385-080
REV: JANUARY 1989
TEACHING NOTE
Allen Lane
A lot more people sweat than perspire.
— Mike Todd
The Allen Lane case describes a man’s efforts to buy a business over a period of several years. The
case describes several failures and provides a number of valuable lessons, including:
— the pitfalls of attempting to purchase a business, including the legal and ethical aspects
— the potential sources of deals
— valuing a prospective purchase
— structuring a deal
Study Questions
1. Evaluate Allen Lane and his search for a business.
— What did he do right?
— What did he learn as the process progressed?
— How have the years since Allen’s graduation from business school made him more or
less well-suited to running his own company?
2. How should Allen Lane value Plas-Tek?
3. How much should he bid? Why?
4. What conditions should he place on his bid?
5. How should he finance and structure the purchase?
Pedagogical Overview
One approach is to spend a good portion of class time going over Allen Lane’s search, pushing
students to really try to get them to identify with him. Then when it comes time to evaluate Plas-Tek,
push students on how they feel about the deal. The “Allen Lane: Supplement” case (HBS No. 384-133)
provides an excellent example of how to structure a deal.
