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  • March 1985 (Revised November 1988)
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Precision Parts, Inc. (A)

By: William A. Sahlman
  • Format:Print
  • | Pages:21 
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Abstract

Contains a description of a decision confronting two entrepreneurs in mid-1981. They are considering purchasing a small manufacturer of precision electromechanical parts. Among the issues in the case are the following: 1) Should Taylor and Grayson buy Precision Parts, Inc.? 2) Should Shawmut Bank provide the loan? 3) Should the venture capital firms invest? 4) What should Taylor and Grayson do? The case is designed to expose students to a different kind of opportunity. Also, students will have to ask and answer the questions: What can go wrong and what can go right? They must develop a plan for managing the risk-reward ratio in their favor.

Keywords

Leveraged Buyouts; Venture Capital; Financing And Loans; Cost Vs Benefits; Investment Return; Strategy; Management Practices And Processes; Risk And Uncertainty; Outcome Or Result; Manufacturing Industry

Citation

Sahlman, William A. "Precision Parts, Inc. (A)." Harvard Business School Case 285-131, March 1985. (Revised November 1988.)
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About The Author

William A. Sahlman

Entrepreneurial Management
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More from the Author
  • Guild Education: Unlocking Opportunity for America's Workforce By: William A. Sahlman, Michael D. Smith, Nicole Tempest Keller and Alpana Thapar
  • 1366 Technologies: Surviving in a Fast Changing World By: Jurgen Weiss, William A. Sahlman and Joseph B. Lassiter III
  • Khan Academy 2018 (Abridged) By: William A. Sahlman and Nicole Tempest Keller
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