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This is the first of a four-case series (397-019-1 to 397-022-1). Rob Lucas, investment director within 3i, the largest UK venture capital company, was in the final stages of evaluating an investment opportunity. Some months earlier, Lucas had been approached by three shareholders (and directors) in Unipalm plc, a profitable and fast growing software distribution company, to provide capital to enable them to buy out the other (two) shareholders; over the ensuing three months, however, the roles had reversed, with the latter now seeking funds. In principle, he felt positive about the investment, although he had some questions about the proposed management structure. He also needed to value the investment, a combination of a fast growing software distribution business and a newly set-up data communications service, and to structure a deal to satisfy both Unipalm and the 3i investment committee.