Case | HBS Case Collection | February 2003 (Revised January 2006)

AIT Group Plc

by G. Felda Hardymon, Josh Lerner and Ann Leamon

Abstract

A U.S. venture capital firm has just learned that the deal structure for purchasing an illiquid U.K. software firm is unacceptable to institutional investors. The group must decide if it still wants to go through with the deal. This decision hinges on whether the investors are confident that their due diligence has uncovered all the issues that affect both the price the investors will pay for the company and the additional amount they need to provide to help it recover.

Keywords: Price; Business and Stakeholder Relations; Mergers and Acquisitions; Venture Capital; Financial Condition; Risk and Uncertainty; Decision Making; Financial Services Industry; United States; United Kingdom;

Citation:

Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "AIT Group Plc." Harvard Business School Case 803-104, February 2003. (Revised January 2006.)