skittlescandy
Mar 20, 2009, 06:16 PM
2. Review the following case study presented in your textbook (The Entrepreneurs Fieldbook by John Vinturella)
• Case Study 7.3: Tammany Supply, Inc. (E) on pp. 215-8.
1. Is now a good time to approach venture capitalists and /or attempt a small stock offering? Will prospective buyers see the same danger signs for the current business that John sees? Are the expansion plans really opportunities, or merely designed to stave off stagnation?
2. Are the danger signs real or imagined? Is John overreacting, seeing shades of the earlier downturn? Would a few years at this comfortable sales volume and profit level adversely affect the company and its employees?
Ans.
3. Has the market matured to the point where TSI has lost the competitive advantage of being the small, independent, locally owned firm? What do you see happening to TSI’s market value if John waits a year or two to approach the equity market?
4. Assuming that the business might appraise for $1 million, how much might John realize if he were to sell it? “What kind of income might that provide for life if wisely invested? What would the investment options be?
Ans.
5. How much might TSI be able to raise on the equity market? What is the most that could be raised while allowing John to keep a controlling interest? Would you recommend trying a public issue, approaching venture capitalists, or looking for private investors?
Ans.
• Case Study 7.3: Tammany Supply, Inc. (E) on pp. 215-8.
1. Is now a good time to approach venture capitalists and /or attempt a small stock offering? Will prospective buyers see the same danger signs for the current business that John sees? Are the expansion plans really opportunities, or merely designed to stave off stagnation?
2. Are the danger signs real or imagined? Is John overreacting, seeing shades of the earlier downturn? Would a few years at this comfortable sales volume and profit level adversely affect the company and its employees?
Ans.
3. Has the market matured to the point where TSI has lost the competitive advantage of being the small, independent, locally owned firm? What do you see happening to TSI’s market value if John waits a year or two to approach the equity market?
4. Assuming that the business might appraise for $1 million, how much might John realize if he were to sell it? “What kind of income might that provide for life if wisely invested? What would the investment options be?
Ans.
5. How much might TSI be able to raise on the equity market? What is the most that could be raised while allowing John to keep a controlling interest? Would you recommend trying a public issue, approaching venture capitalists, or looking for private investors?
Ans.