Should TA Advisors, a private equity firm, take a risk and invest in SkinnyPop Popcorn, a single-SKU snack company with high growth potential, but also infrastructure and operational issues that may be too significant to overcome?
Should TA Advisors, a private equity firm, take a risk and invest in SkinnyPop Popcorn, a single-SKU snack company with high growth potential, but also infrastructure and operational issues that may be too significant to overcome?
In 2014, Jeff Barber and Bill Christ, Managing Directors at TA Associates, were deciding to invest in SkinnyPop Popcorn, a fast-growing ready-to-eat popcorn brand. At the time, TA Associates was looking to enter the ‘better for you’ snacking category. SkinnyPop was a lean, high-margin company, but also had concentration risk, lack of infrastructure, and operational gaps. In this case, students will discuss the opportunities and challenges that TA Advisors should consider when deciding to invest in SkinnyPop.