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 Winfield Dissertation

9-913-530

AUGUST 22, 2012

W. CARL KESTER

SUNRU YONG

Winfield Refuse Supervision, Inc.:

Raising Debt versus Equity

It had been early Summer 2012, and Mamie Sheene was examining her team's calculations once more. The next board of owners meeting is at just two days, and she needed to be sure her demonstration was best. As primary financial expert of Winfield Refuse Supervision, a vertically integrated, non-hazardous waste management company, it was Sheene's responsibility to lead the discussion on how to financial a major purchase. This problem had resulted in contentious controversy at the last board getting together with, and she needed to ensure that the plank could reach a resolution this time around.

Industry History

In the United States, waste materials comprised two main categories: hazardous and nonhazardous. The previous was created primarily by simply manufacturing, and its particular disposal was strictly controlled. Examples of unsafe waste included infectious medical waste, the product, heavy metals, corrosive waste acid or alkali the liquid, and ignitable waste petrol. The non-hazardous waste category included various types of industrial waste materials, as well as municipal solid waste—what most people frequently referred to as trash or waste.

Private employees typically gathered, processed, and disposed of non-hazardous commercial and industrial waste materials. Municipal stable waste could be managed by the municipalities themselves, but nearly 80% of this was likewise outsourced for the private sector. A spend management user collected the waste and then processed that for recovery (i. at the., recycling), combustable for energy recovery, or disposal. The standard operation was very asset-intensive and usually necessary local collection vehicles, long vehicles, transfer stations, material recovery facilities, disposal features, and landfills.

The market was very fragmented, with a few national, public players including Waste Supervision Inc. and Republic Solutions competing with numerous regional operators. With a few exceptions, the majority of local and regional spend companies were privately held. Global companies benefited coming from economies of scale simply by controlling a greater inflow of waste, thereby increasing throughput and using their processing facilities and landfills more efficiently. The waste ________________________________________________________________________________________________________________ HBS Teacher W. Carl Kester and writer Sunru Yong ready this case exclusively as a basis for discussion in the classroom and not as an validation, a source of primary info, or an illustration of effective or perhaps ineffective supervision. Although depending on real events and in spite of occasional referrals to real companies, this situatio is fictitious and any kind of resemblance to actual people or organizations is coincidental. Copyright В© 2012 Director and Geniuses of Harvard College. To order copies or request permission to reproduce components, call 1-800-545-7685, write Harvard Business Submitting, Boston, MA 02163, or go to http://www.hbsp.harvard.edu. This syndication may not be digitized, photocopied, or perhaps reproduced, placed, or transmitted, without the agreement of Harvard Business College.

Purchased simply by: Erik Sarkisov [email protected] EDU on October 27, 2013

913-530 | Winfield Refuse Management, Inc.: Raising Debts vs . Value

management marketplace was growing slower than overall GROSS DOMESTIC PRODUCT, with the waste from a growing population counter by suffering waste per-capita, thanks to elevated recycling and composting. Yet , the business usually generated incredibly steady money flows. Require was foreseeable and recession-proof, and most providers worked on multiyear contracts with the industrial and residential consumers (see Demonstrate 1 to get financial data of select publicly traded waste materials management companies).

History of Winfield Refuse

39 years ago, Thomas Winfield founded Winfield Refuse like a two-truck operation in Creve Coeur, Missouri. In the 4 decades seeing that, the company grew through a combination...

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