Diamond Technical Group

Babson Professor Ed Marram and Jennifer Starr, Case Directors

Abbey Hansen, Case Writer

Arthur M. Blank Center for Entrepreneurship

© Babson College, 1993.

Abstract

The Diamond Technical Group case is used in both New Ventures and a Managing Growing Businesses courses to illustrate the difficulties of the startup and growth of a small high-technology firm, Pyron. It demonstrates the struggles that small companies, especially high-technology ones, encounter when they are continually short of cash and weak in management. After nine years, Pyron has run out of financing sources, the founder has pulled back, and the company is faced with the reality that it will probably go bankrupt unless it takes drastic measures that include selling the entire company or selling its technology.

The case has been used effectively to demonstrate methods on how one would value Pyron. Once a valuation has been determined, a negotiation session between potential buyer and sellers can be carried out. This case is best used in courses that focus on financing, start-up, growth management, team building, opportunity recognition, leadership, cash flow, valuation, and strategic partnerships.

Location of the company: Massachusetts

Year(s) spanned by the case: 1988 through 1991

Industry segment(s): High-tech manufacturing

Stage of the company: Growth

Age of the entrepreneur(s): 50s

DVD

There is no DVD available for this case.

Teaching Notes

A seven page case teaching package, written by Bill Bygrave, is available for this case. The teaching package includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into a course.