discussion

Step 1: This week in class,  Ken Graves (Links to an external site.)Links to an external site. , OSU College of Business alum, will challenge our thinking by presenting us with a case from his time as a partner at  L.E.K. Consulting (Links to an external site.)Links to an external site. , a global strategy consultancy. To arm yourself with the knowledge needed to engage in his presentation, there are two main concepts you need to understand:

· Royalty Monetization: the upfront payment of cash by an investor in exchange for full or partial rights to receive future royalty payments from licensees

· Revenue Forecasting: a calculation of the amount of money that a company will receive from sales during a particular period

To understand these concepts, read the following articles:

· New York Time's article,  The Private Equity Firm that Quietly Profits on Top-Selling Drugs (Links to an external site.)Links to an external site.  

· The Fundamentals of Revenue Forecasting (Links to an external site.)Links to an external site.  by Kevin Hinton and Diane Chen

Step 2: Based on the readings,

· In your own words, provide a definition for each of the above terms.

· What are two key takeaways you’ve learned on each of these concepts?

Step 3: Following Ken's presentation, you will return to the discussion board and answer the following: 

· When faced with a similar situation as Ken described in his presentation, what decision would you have made? Why? 

· What evidence would you have used to back up the choice you made?