Bzzagent Case Study

W06 Case-based Essay: BzzAgent

In looking at the options that BzzAgent has in front of them I would say that they should turn down the proposed term sheet from Firm B and stick to their original term sheet and go with a different firm instead.  Even though Firm B has a fantastic reputation and would bring a lot of cachet to the table, the terms they set along with the exclusion of the desired pay out by BzzAgent they should look elsewhere for their investment needs.  I think the idea to put out the terms to multiple firms all at the same time was genius and probably only possible because of the position they were in financially and where their business was headed.  I would choose Firm A as it would make the most sense to go with the firm that you feel you could work the best with.  It is important that the firm have all the right connections and experience and even though Firm A was slightly lacking in those categories, it is still the right choice.  BzzAgent already has quite the client list and with the kind of momentum they have going for them right now I don’t think they would have too much trouble attracting the right talent in the future and gaining even more popularity.  Sticking to their term sheet with a firm that they trust and can work well with is the formula for success.  Putting more money back into the business in the first few years and giving the current shareholders, and Balter, a much-needed boost in the beginning as a good jump start into their accelerated growth.