2011|Case No.E422| Length 15 pgs.
This case follows the story of Jay Davis and Jason Pananos, classmates from Harvard Business School who started a search fund, Nashton Partners. The case covers their decision to launch a search fund, their investment objectives and goals, and then the search process over a two-year period. The core of the case discusses two specific acquisition opportunities the fund is considering – United Energy Services and Vector Disease Control Inc. There are clear advantages and drawbacks to both opportunities, and the partners must make a decision about what to do before the search fund runs out of money.
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The learning objective is for students to understand and appreciate the challenges of being a search fund entrepreneur, from the actual search process of finding and narrowing down opportunities, to agreeing on valuation, interacting with the company sellers, conducting due diligence, and executing a deal. Students should also consider the search fund investors and their role in making the search fund a success.