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Kalil Diaz: A DR-based Search Firm Considers its First Acquisition (English)

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After nearly two years of searching, Kalil Diaz (SOM '14) wondered if he had finally found the company for which he had been looking. The numbers looked solid, but Diaz knew that no business is perfect or risk-free. The decision he was facing would have a big impact on his investors as well as his own life.

Diaz reflected on his journey to this point. When he came to the Yale School of Management, he had already decided to eschew a traditional job search and explore the possibility of entrepreneurship. A chance conversation during his second year led him to organize a search fund – a vehicle that would allow him to find, purchase and lead a company. He set his sights on acquiring a company in his native Dominican Republic. In the subsequent two years, Diaz found that raising a search fund and beginning the hunt for a company to take over had been a bit of a roller coaster ride. He had come close to making a couple of deals, but for various reasons the acquisitions had not materialized.

Now nearing the end of his search period, Diaz believed he had found a company to purchase. Contact Centers Dominicana (CCD), a Dominican based inbound and outbound call center, fit a number of Diaz’s investment criteria, and its current ownership appeared ready to make a deal at what seemed to be a fair price and Diaz was placating and managing the seller's inquiries about his ability to close on a timely basis. Furthermore, he was somewhat confident he could access funds from his current investors to purchase the company despite several investors being slow in their response to commit. However, Diaz still wondered if making the investment was the right move. How would he transition from the search to being CEO and actually running a company? Moreover, would the acquisition provide suitable financial returns for his investors and himself?

Published Date: 01/08/2017

Suggested Citation: A. J. Wasserstein, "Kalil Diaz: A DR-based search firm considers its first acquisition," Yale SOM Case 17-014, August 1, 2017

Keywords: Business Operations; Dominican Republic; Search Fund; Entrepreneurship through Acquisitions (ETA)

Teaching Notes: Yes