Amy's Buyout: Entrepreneurship Through Acquisition (A)

The case describes a truth-based story about a successful corporate manager who is mulling over the idea of buying her own small business in order to fulfill her sleeping entrepreneurial ambitions. The case consists of three parts that present different phases and dilemmas in the entrepreneurial buyout process: - In Part A, Amy has identified two interesting target companies, WillTools and SW Bedding. She must decide whether to invest more time and capital investigating these targets. - In Part B, Amy has invested quite some time performing due diligence at SW bedding. She must decide whether to proceed with the deal and, if so, how to structure and finance the deal and how to increase value in the business. - In Part C, SW Bedding is faced with an unexpected loss. Amy has to choose whether or not to take the plunge and acquire the company.