Robert E. Siegel, Jessica Morgan
2016|Case No.E565| Length 9 pgs.

This case explores the transformation of a company, ComplexAminos, from a failing start-up to a successful organization preparing for a liquidity event.  After conducting a six-year turnaround strategy, the CEO needed to decide whether the company should go public or be sold.  During the turnaround, the company adopted a roll-up strategy to grow quickly.  This case explores such issues as when roll-ups are appropriate and how the CEO gained the funding and board support to successfully implement the strategy.

Learning Objective

This case is intended for use in a course on entrepreneurial finance. The case encourages students to reflect on how a business model may dictate a firm’s financing strategy and exit options. This case explores a company’s liquidity choices, with a close look at the options of selling to a strategic buyer or going public. The case also looks at management and investor incentives and structuring possibilities, including management carve-outs, participating preferred stock, and non-participating preferred stock.

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