Abstract 

Learning outcomes

This case study explores the strategic decision-making process involved in private equity investing in East Africa, with a focus on the complexities of sourcing, evaluating, and executing investment opportunities in a challenging and emerging market. It aims to help students understand the challenges private equity firms face, such as constrained deal flow, long investment timelines, and the intricacies of conducting due diligence. Students will analyze the decision-making process involved in valuing a company, structuring a deal, and negotiating with stakeholders, while considering the impact of governance, management practices, and post-investment strategies. 

Case Synopsis

Tony Wainaina is faced by a major decision whether to invest or not in a Tanzanian company. This is something he has been pursuing for long with tedious transactions , due diligence, complex deal structuring and valuation negotiations. He, however, has to make the decision whether to invest or not.

Complexity/ Academic level

This case is designed to be used in an undergraduate and postgraduate courses in Private Equity & Venture Capital, where students can analyze investment opportunities. It is also suitable for Strategic Management courses, focusing on decision-making, governance, and value creation in emerging markets. Additionally, it would be valuable in Entrepreneurship & Business Development programs, helping students understand the challenges entrepreneurs face when seeking investment and scaling businesses. The case is also applicable in Finance courses, where students can learn about valuation, deal structuring, and financial risk management. 

Supplementary Materials

Teaching notes are available for educators only.

Keywords

Strategic Management, Private Equity and Venture Capital, Business Development

Citation

Gugu, S. (2024). To invest or not to invest? Kijenge Animal Products. In Strathmore Africa Case Center. Strathmore Africa Case Centre. https://doi.org/10.70268/sacc-05-24-19

Publisher: Strathmore Africa Case Centre

Copyright © 2024, Strathmore Africa Case Centre

Category : Case

Author : Stephen Gugu

Publisher : Strathmore University

Document ID : SACC-05-24-19