Sparrow Therapeutics Exit Strategy

22 Pages Posted: 9 Apr 2014

See all articles by Dzidziso Samuel Kamuriwo

Dzidziso Samuel Kamuriwo

City University London

Charles Baden‐Fuller

City University, London - Cass Business School; University of Pennsylvania - The Wharton School

Date Written: May 2014

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?

Suggested Citation

Kamuriwo, Dzidziso Samuel and Baden-Fuller, Charles, Sparrow Therapeutics Exit Strategy (May 2014). Entrepreneurship Theory and Practice, Vol. 38, Issue 3, pp. 691-708, 2014. Available at SSRN: https://ssrn.com/abstract=2423079 or http://dx.doi.org/10.1111/etap.12003

Dzidziso Samuel Kamuriwo (Contact Author)

City University London ( email )

Northampton Square
London, EC1V OHB
United Kingdom

Charles Baden-Fuller

City University, London - Cass Business School ( email )

106 Bunhill Row
London, EC1Y 8TZ
United Kingdom

University of Pennsylvania - The Wharton School ( email )

3641 Locust Walk
Philadelphia, PA 19104-6365
United States

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