Tommy-Toe Tomatoes: To Sell or Not to Sell
Clare Bohnett and Thomas Patrick*
This case requires the student to provide an informed opinion on whether a private equity firm should now sell one of its principal investments at a substantial profit, but prior to obtaining its potential maximum value. The partners are considering the premature sale in order to bolster the firm’s current track record in the hope of attracting potential investors to participate in a planned second fund. In working through this case, students will gain exposure to the operations of a private equity fund and become acquainted with mezzanine financing.
(ISSN 2229-6891)Since 2010