ortance of proper analyzation of ventures can be seen with the following example of the Patras Cement Company, SA.9 Yankee Cement Company Inc. of Denver Colorado needed to approve an expansion of it's subsidiary, Yankee International SA of Switzerland. The expansion was to build a 500,000-ton cement plant in conjunction with Titan Cement Co. SA of Athens. The plant would reach full production capacity within two years after the beginning of construction. Estimates by both Titan and Yankee showed that total capital needed for the Patras operation was US$15 million. The equipment manufacturer, F.L. Smidth of Copenhagen would finance 40 percent of capital expenditures, and another 20 percent would be financed through the National Investment Bank for Industrial Development, SA. The remaining 60 percent of Patras shares would be equity, of which 75 percent of shares would be owned by Yankee, and 25 percent of Patras shares would be owned by Titan. The international division manager of Yankee, Bob Walbecker, dealt with the Manourpoulos family, who were the owners of Titan. After establishing the connection with Titan, Mr. Walbecker continued to establish good rapport between his division and Titan. Ten days after preliminary negotiations between the two parties Mr. Walbecker was assembling a feasibility team in Denver, which was Yankees' domestic headquarters. The team consisted of a market analyst, an accountant, a geologist, a civil engineer, and Mr. Walbecker, who managed the study. For each American there was a Greek counterpart that translated and disclosed all information known t...
