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This is a two-part case which focuses on the buy-out of a private printed circuit manufacturer. Friends from childhood, David Gray and Peter Mullin want to go into business together. They decide to buy a manufacturing company. The case examines their due-diligence, deal negotiations, and valuation. It asks students to value the company using several different methods and to formulate a maximum offer price. Also considered, is whether Gray and Mullin should purchase the company and how the deal should be structured. Part (B) reveals that David and Peter purchased Shaker Circuits just prior to a major industry consolidation. They had several difficult years but reached break-even, only to find themselves faced with a strategic dilemma: to keep making integrated circuits, the company needed an additional $250,000 investment. Students are asked if they should invest in this increasingly competitive industry, or close the business with a $1 million loss. Today, David and Peter have a highly profitable, debt-free printed circuits brokerage business. By asking, ''What business are we really in?'' Peter and David were able to reposition Shaker Circuits as a ''high-quality, on-time'' distribution channel.