Darby's Investment in Sirma
Synopsis
In March 2010, Burak Dalg n (HBS MBA 2004) led private equity firm Darby's investment in S rma, a local Turkish water and beverage company. S rma was owned and managed by members of two Turkish business families. The existing management, while being highly entrepreneurial, had paid less attention to managing the company in a professional manner, leading to a highly leveraged balance sheet and a significant need for financing. After the investment, S rma introduced new products, opened a new factory, and built up its financial reporting system from scratch. Two years after Darby's investment, S rma's operational performance had improved. However, the company was still suffering from significant financial problems. By early 2013, although S rma had received two cash injections from Darby, the company still required another round of financing. Dalg n was looking at three potential options: Should Darby make another investment in S rma? If Darby stayed invested in S rma, should it replace its managing partners? If Dalg n advised Darby to exit, would that be a premature move?
- Copyright:
- 2016 HBS
Book Details
- Book Quality:
- ISBN-13:
- Publisher:
- Harvard Business Publishing
- Date of Addition:
- 2018-04-30T14:57:03Z
- Language:
- English
- Categories:
- Usage Restrictions:
- This is a copyrighted book.