Case Name :      Technology Plus, Inc. – Moving Onward

Authors :           Susan V. White, Karen Hallows

Source :             North American Case Research Association (NACRA)

Case ID :            NA0292

Discipline :        Finance

Case Length :    21 pages

Solution sample availability : YES

Plagiarism : NO (100% Original work)

Technology Plus was a Virginia IT firm, servicing information technology systems for businesses and government. The firm had grown through acquisition, expanding its technology solution capabilities, areas of expertise, vendor relationships and client bases. In early 2010, the firm was at a crossroads – how far and how fast to expand, how to incorporate prior acquisitions into current operations, and how to obtain financing for continued high growth, whether organic (financed through current earnings), or through additional acquisitions. Decisions about the future of the firm were complicated because the three owners were unable to agree. CEO Ethan Brennan wanted to continue to grow the firm, but was hampered by the inability of his partners to agree on future financing. Founder Gary Hesse was unwilling to put his personal assets at greater risk and vetoed any risky expansions that might require additional collateral. Ethan found his position frustrating enough to consider bankruptcy, selling his portion of the firm, or selling the entire firm.