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HSE_CASE_NR: 299-014 | status: active Title: INCAP CORPORATION Authors: Ahola, Anu Cardwell, William (supervisor) Material: 7 pages + 11 exhibits Publication year: 2007  Language: eng Keywords: corporate finance; debt financing; equity financing; ownership structure; restructuring; small and medium-sized enterprises; Valuation of a company Abstract: In the spring of 1997, Incap Corporation has undergone a harsh restructuring, and consists of two separate areas, contract manufacturing for electronics and furniture companies. Incap was founded by two development companies as a private fund, but in 1990 a venture capitalist took a minority holding. In 1997, the minority holding is a major ownership, and the company management is considering what to do with the share of the venture capitalist, who is also financing company’s competitors, and now willing to decrease its share. The different options must be evaluated, and the valuation of Incap is a major issue. The corporate structure should also be considered anew. The case is suitable for courses in Corporate Finance and Financial Restructuring in advanced undergraduate and graduate level as well as for management seminars for medium-sized companies.