Arcadian Microarray Technologies, Inc.

Darden Business Publishing Cases

ISSN: 2474-7890

Publication date: 20 January 2017

Abstract

In August 2005, an investment manager of a hedge fund is considering purchasing an equity interest in a start-up biotechnology firm, Arcadian Microarray Technologies, Inc. The asking price is $40 million for a 60 percent equity interest. Managers of the firm are optimistic about the firm's future performance; the investment manager is more conservative in his expectations. He calls on the help of an analyst with her firm to fashion a counterproposal to Arcadian's management. The tasks for the student are to apply the concept of terminal value, interpret completed analyses and data, and derive implications of different terminal-value assumptions in an effort to recommend a counterproposal. Very little numerical figure-work is required of the student.

Keywords

Citation

Bruner, R. and Carr, S. (2017), "Arcadian Microarray Technologies, Inc.", Darden Business Publishing Cases. https://doi.org/10.1108/case.darden.2016.000027

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Publisher

:

University of Virginia Darden School Foundation

Copyright © 2005 by the University of Virginia Darden School Foundation, Charlottesville, VA. All rights reserved.

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