Hudson St. Clair: Exit or Operate?
In February 2017, four co-founders were deciding whether or not to launch their new custom suit business, Hudson St. Clair. The company would manufacture made-to-measure suits in Detroit, Michigan, and sell them online, across the United States. The co-founders approached Hulin Partners, a private equity company to see if it would be interested in investing in the idea, but the company offered instead to buy the business. The four founders need to determine whether they would infuse their own equity and grow the business or sell the business plan and existing contracts to Hulin Partners. To decide what to do, the team first needed to understand the current business environment, evaluate the product and marketing strategy, and project the new venture's financial performance for the first three years of operations.