Alex Hemmert

During the Amortization Period, the music stops. No more new assets. All cash flows from existing assets go straight to paying down investor principal. This is usually triggered by time or performance metrics falling below certain thresholds. Putting a deal into an amortization phase more quickly is a risk mitigation feature that can help limit

Execution must always be tied to the firm’s value and cost drivers.

Motivations behind Partnerships These seven trends have increased the salience of partnering. In addition to lowering the costs or risks associated with an activity, a partnership offers the firm some control over the supply or coinvestment relationship that would not be available in a market contract. What do firms want to control? What are the

Here the advantage is firm-specific. Firms integrate their activities across countries to achieve lower costs through economies of scale or scope.