Session 15: Feb 26, 2008
Mergers & Acquisitions
Quote of the Day
"You
gotta know when to hold them, know when to fold them..." ~ Kenny
Rogers
Summary
When we
first met Palm in Session 7 Jeff Hawkins was cleverly using his Intellectual
Property to launch a revolution. Now we see Jeff and his trusty side kick CEO
Donna Dubinsky in peril again, struggling to stay alive and realize their
dream. Up against the wall and almost out of money, Donna and Jeff have to
consider various ways to beg, borrow and steal a future. Out of the blue they
are confronted with an offer to sell the company. In this case we will examine
how mergers and acquisitions can be viable paths for entrepreneurs to achieve
their mission - not simply a graceful exit.
Required Readings (Policy on Required Readings.)
- Readings from the
Textbooks:
- Technology Ventures (Dorf and Byers): Ch 15 Acquisitions, Mergers
and Global Business (Highlights: 15.1-15.2)
- Case:
- Palm Computing,
Inc. 1995: Financing Challenges (in course reader)
- Watch
the following short video clips:
Study Questions (Policy on Study Questions.)
- What was Jeffs' mission in
starting Palm? Has he achieved it at the time of this case? What stands in
his way?
- What experiences have
Jeff and Donna had with partners and venture capitalists that might color
their receptivity to Zakin's offer? What impressions do they have of US Robotics
and why?
- What are the top three
reasons Donna and Jeff should reject US Robotic's offer and go it alone?
- Imagine you are an
entrepreneur with a relatively successful technology start-up. Several
companies are interested in acquiring your company. How would you decide
whether to be acquired or not? How would you decide which one to sell to?
Team Online Assignment (Policy on Online Assignments.)
- Put yourself in Jeff Hawkins
and Donna Dubinsky's shoes. What are the principle one or two positives
and negatives of going it alone versus selling to U.S. Robotics for each
of the following constituents:
- The investors
- The employees
- The customers
- You, personally
- Which of these various points of
view is most important in making your ultimate decision?
