In 2014, the co-founder of a new business needs to develop a solid business case for the value of her new software application, Bridgit. Focused on reducing construction delays due to poor deficiency management, Bridgit's software enables project managers to eliminate wasted resources (e.g., time, money, relationship capital) by delivering an easy-to-use software solution. Determining the value of Bridgit in the absence of meaningful numbers creates a challenge: ask for too much and lose your investment; ask for too little and appear naive or give up too much.
The co-founder of a new business needs to develop a solid business case for the value of her new software application, Bridgit. Focused on reducing construction delays due to poor deficiency management, Bridgit's software enables project managers to eliminate wasted resources (e.g., time, money, relationship capital) by delivering an easy-to-use software solution. Determining the value of Bridgit in the absence of meaningful numbers creates a challenge: ask for too much and lose your investment; ask for too little and appear naive or give up too much.
Two entrepreneurs were investigating Fabric Super-Store franchise ownership opportunities available to them in Ontario, Canada. The Fabric Super-Store had 68 locations worldwide, comprised of both corporate-owned and -operated stores and licensed franchises. It had recently undertaken to convert all existing corporate-owned stores to franchises. The entrepreneurs had recently re-located to the area after several years pursuing different careers in the United States. Unable to find significant meaningful employment, they decided to pursue franchise-ownership. The Fabric Super-Store appealed to them due to its high-margin product, little competition, low overhead, and steady supply of customers. Recognizing their limitations in terms of finances and product unfamiliarity, the entrepreneurs had to determine the critical points to be negotiated into their proposal for becoming a Fabric Super-Store franchisee.
The entrepreneurs had offered to purchase one Fabric Super-Store franchise; management had countered with vendor take-back (VTB) financing toward the purchase of two stores if the entrepreneurs would agree to buy and operate both locations. The VTB debt would be in second position to the bank in the event of a bankruptcy. The couple was convinced they could be successful franchisees with both stores, but were concerned with the high proposed interest rate on the VTB offer. While there was no penalty for early repayment (as in their secured bank loan), the bank had offered very competitive rates. After evaluating the financial implications of Fabric Super-Store's counter offer, it was clear that without an immediate and substantial increase in sales at both stores, the entrepreneurs would find themselves unable to operate the business due to the high financing costs. Although both parties were motivated to make a deal happen, some important roadblocks would need to be navigated in order to actually get it done.
The two entrepreneurs met with Fabric Super-Store's executive management team to present an offer to purchase the Kitchener store and a right of first refusal (ROR) on a second, nearby location in Cambridge. Upon consideration and rejection of the ROR, management responded with an intriguing counter-offer in terms of a "vendor take-back" offer (VTB). Fabric Super-Store offered vendor financing terms over three years provided the entrepreneurs purchased both locations. Somewhat complicating their decision to buy was discovering that the Cambridge location had machinery much newer and larger than that in the Kitchener store. Should Cambridge be sold to another party, it could threaten the success of the Kitchener store. The entrepreneurs concluded that they would either need to buy both locations, or pass on the opportunity completely. What to do?
Late in August 2004, Chris Higgins was forced into the unenviable position of determining the future of Ring-A-Wing, a London, Ontario-based fast food producer of premium chicken wings for home delivery. After making a personal loan to a friend wishing to invest in the business, the situation devolved in less than nine months from Higgins being a passive lender to being a significant investor to sitting in a bankruptcy meeting trying to determine the future of the business. The issue in the (A) case is whether the Higgins group should reopen Ring-A-Wing.
This is a supplement to Stitch It (A), product number 9B09M022. The Stitch It Group (Stitch It) is a mall-based clothing alteration service. Having previously sold Stitch It to its current owners in 1990 (retaining the chief executive officer (CEO) position), the founder and CEO was presented with an opportunity in 2003 to repurchase the company. Having originally sold the business because he was too cash-strapped to grow it himself, Stitch It had since grown from three store locations to 84 stores under three brand names spread throughout Canada and the United States. In determining whether to buy back the firm he founded, the founder and CEO also needed to consider his daughter Jennifer's expressed interest in becoming an executive in the firm. How would he provide Jennifer with the proper technical training to become familiar with all aspects of the firm's business, and improve her business acumen and leadership skills? The founder and CEO had one week to inform the owners of his intent to purchase and he felt it was a good deal, considering the opportunity for growth. Even if the founder and CEO resolved to buy back his company, he wondered how to train Jennifer to take over the business one day.
This is a supplement to Stitch It (A), product number 909M22. The Stitch It Group (Stitch It) is a mall-based clothing alteration service. Having previously sold Stitch It to its current owners in 1990 (retaining the chief executive officer (CEO) position), the founder and CEO was presented with an opportunity in 2003 to repurchase the company. Having originally sold the business because he was too cash-strapped to grow it himself, Stitch It had since grown from three store locations to 84 stores under three brand names spread throughout Canada and the United States. In determining whether to buy back the firm he founded, the founder and CEO also needed to consider his daughter Jennifer's expressed interest in becoming an executive in the firm. How would he provide Jennifer with the proper technical training to become familiar with all aspects of the firm's business, and improve her business acumen and leadership skills? The founder and CEO had one week to inform the owners of his intent to purchase and he felt it was a good deal, considering the opportunity for growth. Even if the founder and CEO resolved to buy back his company, he wondered how to train Jennifer to take over the business one day.
The president, chief executive officer (CEO) and co-founder of RepeatSeat wanted his company to be the first to enable mobile ticketing by targeting consumers at movie theatres. But the company's U.K.-based mobile solutions partner had not yet perfected a way to send bar codes wirelessly over the code division multiple access (CDMA) network. The CEO is faced with whether the company should continue to stay the course with its U.K. partner, rely on a local Calgary, Alberta firm's technology or seek to build the solution by itself.
The Stitch It Group (Stitch It) is a mall-based clothing alteration service. Having previously sold Stitch It to its current owners in 1990 (retaining the chief executive officer (CEO) position), the founder and CEO was presented with an opportunity in 2003 to repurchase the company. Having originally sold the business because he was too cash-strapped to grow it himself, Stitch It had since grown from three store locations to 84 stores under three brand names spread throughout Canada and the United States. In determining whether to buy back the firm he founded, the founder and CEO also needed to consider his daughter Jennifer's expressed interest in becoming an executive in the firm. How would he provide Jennifer with the proper technical training to become familiar with all aspects of the firm's business, and improve her business acumen and leadership skills? The founder and CEO had one week to inform the owners of his intent to purchase and he felt it was a good deal, considering the opportunity for growth. Even if the founder and CEO resolved to buy back his company, he wondered how to train Jennifer to take over the business one day.
The Stitch It Group (Stitch It) is a mall-based clothing alteration service. Having previously sold Stitch It to its current owners in 1990 (retaining the chief executive officer (CEO) position), the founder and CEO was presented with an opportunity in 2003 to repurchase the company. Having originally sold the business because he was too cash-strapped to grow it himself, Stitch It had since grown from three store locations to 84 stores under three brand names spread throughout Canada and the United States. In determining whether to buy back the firm he founded, the founder and CEO also needed to consider his daughter Jennifer's expressed interest in becoming an executive in the firm. How would he provide Jennifer with the proper technical training to become familiar with all aspects of the firm's business, and improve her business acumen and leadership skills? The founder and CEO had one week to inform the owners of his intent to purchase and he felt it was a good deal, considering the opportunity for growth. Even if the founder and CEO resolved to buy back his company, he wondered how to train Jennifer to take over the business one day.