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Digi-Tec: The VC investor exit decision

Paeleman, Ine
Manigart, Sophie
Slagmulder, Regine
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Publication Year
2019
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Book
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Publication Number of pages
10
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Abstract
Digi-Tec was a growing ICT firm and achieved growth both organically and through mergers and acquisitions (M&As). The large number of shareholders had divergent goals and visions for the future. In order to ensure further growth, two main shareholders searched for an external investor to buy out the others and thereby align and strengthen its governance. In 2011 the Spain-based private equity firm SRIC invested in Digi-Tec. This case documents the interactions between the external investor and the management. An exit opportunity arose much earlier than expected. The investment manager is faced with the question whether it is optimal to exit already after three years, or rather to stay on board for some more years as initially planned.
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Private Equity, Entrepreneurial Finance, Exit Strategy, Board of Directors
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