17.08.2019-550 views -Nantucket Nectars Case
Mary Scott and Tom Initially were internet marketers and for about 9 years worked tirelessly performing most of the core detailed activities necessary to manage their particular company. When the time came to hear them to make a decision on how to increase their firm, my decision to discuss an agreement to sell all or some of the business stock could have been based on 1) raise capital to aid the business's ideal plan, 2) align new management to do day-to-day detailed and administrative tasks, and 3) shell out me a significant amount of cash in order to pursue various other ventures. Nantucket Nectar's earnings was a developing rapidly plus the brand was receiving well deserved recognition and publicity. And the company's technique and devotion to high quality was proving to align well, and was timed very well, to the healthier trend of newly emerging beverage industry. However the company's cost for premium materials and operating expenses had been very expensive and was going out of the business with net loss during the first 8 years. Considering the organization was obtaining unsolicited buy interests via several well established beverage firms, many of who had founded supply sequence and distribution networks, it might have been a good time to receive premium pricing for shares inside the company increase the company's progress strategy. Basically was Jeff or Mary with a have your vote to decide which will direction the business should go We would have chosen to sell a percentage, or all, of the company to one of the beverage businesses like Marine Spray or perhaps Seagram. The goal of this sale would be raise capital to support the business plan and development strategy in the company, as well as free me personally from the everyday operational activities and allow me to pursue other projects.