Ait Group

SUBJECT AREAS: Due diligence, NegotiationsCASE SETTINGS: United Kingdom; Software industry; Venture capital firms; 33 million British pounds; 500 employees; 2002A U.S. venture capital firm has just learned that the deal structure for purchasing an illiquid U.K. software firm is unacceptable to institutional investors. Discusses whether the group still wants to go through with the deal. The key to that is whether the due diligence has uncovered all the issues that would affect the price that the investors will pay for the company and the amount they need to provide to get it back on its feet