Business Analysis HBS graduate Sam Marcus, along with experienced financier William Walters, tried to find an investment opportunity along with good cash flow in a “B” industry. They finally saw the market development opportunity possible in Mike's cabinet and in June 1997 they purchased a small 25-year-old carpentry company from its creator and renamed it CMR Enterprises. Mike's Cabinet was one of 1,500 generally small companies that made up the architectural test fabrication industry, producing installed test joinery, cabinetry, and fixtures for high-end businesses and homes. After Marcus and Walters bought the company two years ago, it retained 115 people and reported annual revenue of $6.8 million, placing it in the top 5% of its industry. Although commercial work accounted for two-thirds of his business and 80% of his sales, residential work showed enormous potential for development. Was CMR's decision to establish a tie-up with Blackstone a good one? In the beginning, the corporate tie-up between CMR and Blackstone Homes started out smoothly and full...