City Research Online

Sparrow therapeutics exit strategy

Kamuriwo, D. S. & Baden-Fuller, C. (2014). Sparrow therapeutics exit strategy. Entrepreneurship: Theory and Practice, 38(3), pp. 691-708. doi: 10.1111/etap.12003


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 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:
[thumbnail of Sparrow Therapeutics case 22012015.pdf]
Text - Accepted Version
Download (566kB) | Preview


Add to AnyAdd to TwitterAdd to FacebookAdd to LinkedinAdd to PinterestAdd to Email


Downloads per month over past year

View more statistics

Actions (login required)

Admin Login Admin Login