Discounter's Supply, Inc.

By H. Grousebeck
1994 | Case No. E14
This case presents a unique opportunity to look into a business acquisition gone bad. This case follows Richard Hellman, the founder and president of Pinnacle Investment Partners (PIP), from the formation of his partnership through the purchase and management of its first acquisition. Discounter’s Supply Inc. (DSI) is a deep-discount wholesaler of consumer products. In PIP’s estimation, DSI is a good company that fell on tough times because of poor financial management. The two ignore early warning signs and a pushy seller, and pursue the acquisition of DSI. The case presents the partners attempt to deal with their inability to turn the company around.
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