Case Studies
Case Study
Eco-Products, Inc.
September 2009
This case study examines entrepreneurial finance in the context of sustainable venturing and rapid sales growth. By presenting the cash needs, financial performance data, alternative sources of funding, and strategic priorities of Eco-Products, one is able to explore various aspects of structuring financial capital for a growing venture.
The case explores a proposed offer from a private investor and requires one to determine whether the offer is beneficial and fair in light of the company’s goals, values, and competitive position. This case has also been included in the fourth edition of Entrepreneurial Finance, the leading entrepreneurial finance text used in business school courses, coauthored by Leeds professors Chris Leach and Ron Melicher. It presents various aspects of finance in the context of entrepreneurship, company growth, and sustainable venturing and is suitable for any discussion covering financial decisions.
Eco-Products, Inc., is a leading supplier of environmentally friendly food service containers based out of Boulder, Colorado. As a company, Eco-Products is committed to responsible management and environmental sustainability. When demand for products made from renewable resources skyrocketed in 2007, the company faced rapid growth which was hard to sustain in light of their lengthy supply chain which tied up cash and made it difficult to stock the demanded inventory. Eco-Products therefore sought additional sources of funding through private equity to feed the company’s hurried growth.
