Case Teaching Package
A case teaching package, written by Bill Bygrave, is available for this case. It includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into your course.
Length
This case is
20 pages in length and its case teaching package is
8 pages.
Abstract
The Diamond Technical Group case is used in both a New Ventures and a Managing Growing Businesses course to illustrate the difficulties of the startup and growth of a small high-technology firm, Pyron. It demonstrates the struggles that small companies—especially high-technology ones—encounter when they are continually short of cash and weak in management. After nine years, Pyron has run out of financing sources, the founder has pulled back, and the company is faced with the reality that it will probably go bankrupt unless it takes drastic measures that include selling the entire company or selling its technology.
The case has been used effectively to demonstrate methods on how one would value Pyron. Once a valuation has been determined, a negotiation session between potential buyer and seller can be carried out.
- Location of the company: Massachusetts
- Years spanned by the case: 1988 through 1991
- Industry segment: High-tech manufacturing
- Stage of the company: Growth
- Age of the entrepreneurs: 50s
Study Questions
- Given what you know by now about DTG and Pyron, should DTG invest time and energy in a careful job of due diligence for a possible acquisition of Pyron?
- What key factors should be considered in their due diligence strategy?
- Does Pyron meet DTG's acquisition criteria?
- Would you recommend that DTG acquire Pyron?
- What do you think Pyron is worth to the players in this situation: DTG, IG, Bob Fontaine, Pyron's employees, and Pyron's customers?
- What do you think DTG should offer for Pyron?
- What should Ben Garvey present to the board?
Key Words
financing, startup, growth management, team building, opportunity recognition, leadership, cash flow, valuation, strategic partnerships
The downloadable file for this case is in Microsoft® Word 7.0 for Windows®.
If you do not have Microsoft Word, you can download the free Microsoft® Word Viewer 97 right here: For Windows 3.x For Windows 95
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