City Research Online

Abstract

The case focuses on Ken Powers, cofounder and chief executive officer of Sparrow Therapeutics, whose young biotechnology company has reached a critical stage where he has to decide whether or not to sell. The company's three main sets of investors have different priorities: (1) a quick cash sale now, (2) delay sale for about a year if returns are greater, and (3) delay sale for 2 years, build company value, and retain autonomy. What choice would be best for the company, for its investors-and for Ken himself? And when would be the best time to implement the exit strategy?

Publication Type:	Article
Additional Information:	This is the peer reviewed version of the following article: Kamuriwo, D. S. and Baden-Fuller, C. (2014), Sparrow Therapeutics Exit Strategy. Entrepreneurship Theory and Practice, 38: 691–708., which has been published in final form at http://dx.doi.org/10.1111/etap.12003. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Self-Archiving.
Subjects:	H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Departments:	Bayes Business School > Management
SWORD Depositor:	Symplectic Administrator

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