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Another four years had passed, and it was now April 2018. After two attempts to shut down the venture totally, Hubert Rhomberg’s father Walter-Heinz presented Hubert with an opportunity to buy their cash-burning company, CREE, for €1. CREE had been “his baby” for the better part of a decade, during which it had burned more than €13 million in cash. With only €180k left in the bank, and some critical bills to pay to key suppliers, Hubert would be out of cash in two months’ time. Should he buy CREE? Or should he go back to the family construction, railway technology and resources business, where he’d been spending nearly 80% of his time anyway?
Learning objectives
- Examine some of the inevitable challenges in changing old unsustainable patterns to more sustainable ones.
- Explore why organisations and those within them resist change.
- Analyse the stages that lead to impact and where a particular venture falls therein
- Assess the appropriate valuation of a new venture at multiple points along its path
Details
| Publication Date: | February 2023 |
| LBS Case Code: | CS-22-014 |
| Topic: | Entrepreneurship |
| Subjects: | 17 Global Goals, New venture evaluation, Organisational resistance to change, Social impact measurement, Sustainability, Sustainable construction |
| Industry: | Construction |
| Geography: | Austria, Europe |
| Pages: | 5 |
| Format: |
