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Case
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Reference no. 395-060-1
Published by: London Business School
Published in: 1995
Length: 11 pages
Data source: Field research

Abstract

Second of a three case series (395-059-1 to 395-061-1) designed for two sessions (A and B & C) examining the process of building a successful venture capital investment. The syndicate decides to take the company private through a leveraged buy-out. Following the deal, the management team proceeds to redirect the business''s strategy away from generic and toward ethical and OTC pharmaceuticals. By 1990, the situation of the venture capitalists'' funds requires that they exit from the investment within the next few years. However, a recent attempt to sell the company has failed. The case looks at the roles of management and the venture capitalist. Have they added value to the company or the investment funds? Have they made the business more saleable? To what extent are these two objectives in conflict? What should management and investors do now to achieve an exit?
Location:
Industry:
Other setting(s):
1987-1990

About

Abstract

Second of a three case series (395-059-1 to 395-061-1) designed for two sessions (A and B & C) examining the process of building a successful venture capital investment. The syndicate decides to take the company private through a leveraged buy-out. Following the deal, the management team proceeds to redirect the business''s strategy away from generic and toward ethical and OTC pharmaceuticals. By 1990, the situation of the venture capitalists'' funds requires that they exit from the investment within the next few years. However, a recent attempt to sell the company has failed. The case looks at the roles of management and the venture capitalist. Have they added value to the company or the investment funds? Have they made the business more saleable? To what extent are these two objectives in conflict? What should management and investors do now to achieve an exit?

Settings

Location:
Industry:
Other setting(s):
1987-1990

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