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Divestiture & Acquisition
When is it good money after bad?

After investing over $10 million in a telecom related startup, an investment fund was considering management’s request for an additional $10-$15 million.

The startup’s original targets and goals were unmet and the current strategy was different from the plan initially funded.  A clear consensus on how to proceed had not yet emerged.

We provided the fund with an independent review of the startup’s new strategy:  assessing its market potential, evaluating the risks it faced, and delineating key issues likely confronted in the future. 

Our analysis was accepted by management and key investors as accurately assessing the circumstances, and identifying risks inherent in the enterprise.  Using this as a foundation, a consensus was built among stake holders on a three phase plan for resolution.  Eventually, based on our analysis, the fund opted to divest the business, management was  divided into two seperate groups, each able to buy a portion of the firm split upon strategic lines.