Sierra Capital Partners Harvard Case Solution & Analysis

Sierra Capital Partners Case Solution

After making their MBAs from Stanford Graduate School of Business in 2008, Tessa Marks and Jason Church began a hunt fund, Sierra Capital Partners (SCP), with the objective of getting and running a business together. Marks, who had actually been an administration specialist with McKinsey & Company for 3 years, and Church, who had actually been an item supervisor for Nike, brought interdependent ability to the table. They were delighted about entering a running function and developing a company. They shared a strong work principles as well as had a comparable set of expert worths. Over and above their own efficient collaboration, they were likewise delighted that SCP had the company support of their financiers, and felt great that they might protect the equity required for the ideal chance.

After 20 months of effort and couple of potential customers, Marks and Church unexpectedly found themselves actively assessing the 3 finest acquisition chances they had actually seen given that the creation of their fund:

- Pocket Book Toys (PB), a direct sales business using premium academic toys for children, young children and young kids

- Great Greens (GG), an environment-friendly launch that made and dispersed "green" manure for house garden enthusiasts

- American Veterinary Firm (AVC), a top quality chain of 15 little veterinary healthcare facilities in Los Angeles, CA

Marks and Church just had about 5 months of runway left in their search fund. Although extremely various, each of the alternatives was feasible, and each seller was certified. The pair disputed ways to finest make sure a favorable result. Above all, they questioned no matter if they need to put all their energy and focus into one chance, or run parallel procedures. They likewise questioned if they must try to raise extra search capital to remove a few of the pressure. After consulting with their financiers, Marks and Church thought raising extra capital was possible, although it would be pricey (e.g. a 100 percent step up), and sidetracking to their efforts of carrying out due diligence and settlements on an offer.

This is just an excerpt. This case is about Business

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