1. Circuit Board
Corporation: Case Study
Analysis
Presented By: Group 4

2. Various forecasts of industry growth and
economic recovery
● The year 2001 saw the aftermath of two important
event: dot com burst and 9/11.
● There was a forecast that the electronic component
sales would increase by 5%.
● The aftermath of 9/11 saw an upswing in the demand of
security system and defense contract, which was hoped
to continue in the coming years.

3. SWOT Analysis of CBC
Strengths
● They were the pioneers in electrochemical
production of printed circuit boards.
● The company had a strong customer base.
Weakness
● The company didn’t adhere to the latest
fabrication techniques;
● They didn’t had the fund to invest in new
equipments.
● They didn’t had the technical ability to produce
high end complex circuit.
Opportunities
● Rise in defense contracts with preference for
domestic producers.
● The industry capacity reduced due to the
recession.
Threats
● CBC attained volume through its presence in
the mid and low end segments; these segments
where open for attack by cheap offshore
contractors of Asian countries.
● With advancement in technology, the
complexity would increase along with the
requirement for multi-layered circuit boards.

4. Recommendation of the Board
Ben Cashman Don Armour Dane Lombard Will Tatelman
President & CEO M&A specialist Turnaround specialist Auditor & Maggie’s personal
counsel
● Use of inventory,
● Wait for market
turnaround,
● With cutbacks-profitable
at $20 million
in sales,
● possibility is up to $30
million.
● Chapter 11
● Convenience creditors
to be paid full to stuck
by the company.
● Acquisition of small and
financially weak firms.
● Target sales of
$100million.
● Market will not get any
turnaround.
● Throw a light on firm’s
valuation.
● Firm as an entity is less
valuable than to sell it
in pieces.
● A deal should be made
to get Maggie
ownership of the
building for her shares.
● Then she can lease the
plant back to the
company.
● Needham & Co.’s
prediction on industry
growth.
● Chapter 11 will allow to
renegotiate all bills with
creditors.
● This will help to buy
● Optimistic scenario
projection.
● Firms are ready to
make deals.
● Needham & Co.’s
prediction of rebound
for 6 months.
● Henderson Ventures,
DLouhy Merchant
predicted no recovery
till 2003.
● Turbulent scenario:
Two contradicting
reports
1)kaufman & Co.’s
report
2)Wells Fargo’s report..

5. Meggie’s role as leader and her dilemma
● Not clear what can be done
● She wants to secure her life
● Not fit for the role of chairman
● What to do with CBC ?
● Withdraw or Invest ?
● Poor decision making ability

6. Recommendations for Meggie
● Maggie should sell her shares.
● Get out of the business.
● Strong possibility CBC will not survive in
economic downturn.
● Not worth risk to rent
● Should think about retirement