Subject category:
Finance, Accounting and Control
Published by:
NACRA - North American Case Research Association
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https://casecent.re/p/78735
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Abstract
Jennifer Fairbanks, CEO of Circle Electronics, faces an opportunity to become controlling owner of the firm. Bob Murray, her cofounder, financier, and mentor, seeks to convert his holdings to cash. In the low-margin electronics sub-contract manufacturing business, however, Circle''s operating results give little reason to hope for debt financing to replace Murray''s equity.
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Abstract
Jennifer Fairbanks, CEO of Circle Electronics, faces an opportunity to become controlling owner of the firm. Bob Murray, her cofounder, financier, and mentor, seeks to convert his holdings to cash. In the low-margin electronics sub-contract manufacturing business, however, Circle''s operating results give little reason to hope for debt financing to replace Murray''s equity.