Posted: May 25th, 2022
The company, Nantucket Nectars has a variety of options available that will help determine their future. The information in the case study directs focus on the decision to either sell, go public, or remain independent. The managers appear comfortable with any option listed. Still, in order to make the best decision, pros and cons for each must be made.
Should the company go public, they must go through the process of having an initial public hearing. This could lead to numerous benefits. One of which is a new source of capital that can be used to invest in the company. Instant capital funding allows Nantucket Nectars to grow and settle some past and future debts. If the company plans to grow, they will need more liquid capital to do so.
An IPO by going public would allow the current management to remain (Acharya & Xu, 2017). Scott for example, would continue with the strategies designed for the company and allow for increased brand awareness than going public offers. The memorable and quirky aspect of Nantucket Nectars may increase positivity for the company and continue to allow it to successfully market to a new audience.
The cons however, lie in the potential new investors the company will be responsible for as the company begins selling stock. These investors must be clued in on the direction of the company periodically each year (Triarc for example, may replace staff should they buy). They must also allow for additional input from major investors and deal with governing bodies related to stocks and bonds. Such effort could prove to be stressful for current management and may impede progress in accomplishing certain goals (Acharya & Xu, 2017). This lends into the other question of identifying and dealing with potential buyers of Nantucket Nectars. For example, if the potential buyers become investors, how will that play into their strategies? Mike Egan invested 0,000 for 50% of the company. But he did not supervise them and let them grow in their own way.
The pros and cons for remaining independent are simple. Nantucket Nectars will remain able to control its direction regarding company goals if it remains independent. The growth will not be triggered by investors and management will be better able to craft and solidify Nantucket Nectars (NN) through its own methods and timeline. However, a big con for remaining independent is lack of funding and liquid capital. Liquid capital remains the most important aspect of any business success (Ang & Oliva, 2004). Without enough liquid capital, NN will not be able to grow as quickly nor promote any solutions that require additional funding.
Should NN be sold, there will be a possible change in management. However, sometimes new leaders can bring fresh ideas, allowing for the company to gain a new foothold. There have been times when companies are sold and become huge. A good example of that is PayPal. There are other times the opposite happens. The biggest problem with selling the company comes from potentially changing what the brand is and allowing someone else to operate it under their vision (Ang & Oliva, 2004).
When it comes to owners identifying and dealing with potential buyers, the problem lies in asserting what the outcome should be. If the owners want investment in the company rather than complete sell-off, then it must be communicated. If they see the profitability is decreasing or not keeping up with costs, then they must identify buyers willing to merge ideas rather than outright replace them. Ultimately, the idea of collaboration should lead to better identification of beneficial buyers. Tropicana and Ocean Spray for example, were interested in buying a portion of the company. They may be good investors because their products are similar and may have a similar vision to NN. Triarc, a company rumored to have wanted to buy NN, tried to contact as well and appeared to be a poor fit, especially how they went about seeking to buy or in the very least, see the companys overall market value.
Regarding NNs worth, one must look at why people would be interested in buying in the first place. Triarc, Pepsi, and Ocean Spray, among a few others want to buy NN or at least buy a portion. This is because of NNs broad appeal to the 18-34 market. The company also has a stabilizing cost structure and enable a buyer to expand into the juice cocktail grouping with little risk on brand equity (Lassiter III, Sahlman, & Wasserman, 2014). Because NN has at least 100 employees and is on its way to becoming more successful, more profitable, buyers may see the company as one that has little to work on and can expand their own brand. Brands like Ocean Spray would be a great match due to the nature of their products.
Regarding selling, they should sell a portion of the company like they did with Egan. The ability of the company to allow for expansion for another company and access to a desirable demographic should enable NN to sell according to their needs. Especially since multiple buyers remain interested. They can sell some ownership stake to a buyer interested in allowing NN to pursue its goals like it did in its initial phase of investment and remain as advisors.
The revenue for NN from 1994 to 1996 almost doubled each year. Going from $8,345 to $29,493. The gross profit almost tripled from 1994 to 1995 and doubled from 1995 to 1996. The EBITDA for 1996 was 969 (Lassiter III, Sahlman, & Wasserman, 2014). If NN sees sales in supermarkets, which the company has seen no to low expansion, its sales could increase dramatically, adding further value to the company. As a standalone company, NN may be worth $65,226 (valuation in $000s). The companys market value will grow at least three times much (assumptions), if it is sold to another company and investments are made for growth.
Acharya, V., & Xu, Z. (2017). Financial dependence and innovation: The case of public versus private firms. Journal of Financial Economics, 124(2). doi:10.3386/w19708
Ang, S., & Oliva, A. (2004). Superior Customer Value in the New Economy: Concepts and Cases, Second Edition. Boca Raton, FL: CRC Press.
Lassiter III, J. B., Sahlman, W. A., & Wasserman, N. (2014, February). Nantucket Nectars: The Exit – Case. Retrieved from https://www.hbs.edu/faculty/pages/item.aspx?num=37865
Are you busy and do not have time to handle your assignment? Are you scared that your paper will not make the grade? Do you have responsibilities that may hinder you from turning in your assignment on time? Are you tired and can barely handle your assignment? Are your grades inconsistent?
Whichever your reason is, it is valid! You can get professional academic help from our service at affordable rates. We have a team of professional academic writers who can handle all your assignments.
Students barely have time to read. We got you! Have your literature essay or book review written without having the hassle of reading the book. You can get your literature paper custom-written for you by our literature specialists.
Do you struggle with finance? No need to torture yourself if finance is not your cup of tea. You can order your finance paper from our academic writing service and get 100% original work from competent finance experts.
While psychology may be an interesting subject, you may lack sufficient time to handle your assignments. Don’t despair; by using our academic writing service, you can be assured of perfect grades. Moreover, your grades will be consistent.
Engineering is quite a demanding subject. Students face a lot of pressure and barely have enough time to do what they love to do. Our academic writing service got you covered! Our engineering specialists follow the paper instructions and ensure timely delivery of the paper.
In the nursing course, you may have difficulties with literature reviews, annotated bibliographies, critical essays, and other assignments. Our nursing assignment writers will offer you professional nursing paper help at low prices.
Truth be told, sociology papers can be quite exhausting. Our academic writing service relieves you of fatigue, pressure, and stress. You can relax and have peace of mind as our academic writers handle your sociology assignment.
We take pride in having some of the best business writers in the industry. Our business writers have a lot of experience in the field. They are reliable, and you can be assured of a high-grade paper. They are able to handle business papers of any subject, length, deadline, and difficulty!
We boast of having some of the most experienced statistics experts in the industry. Our statistics experts have diverse skills, expertise, and knowledge to handle any kind of assignment. They have access to all kinds of software to get your assignment done.
Writing a law essay may prove to be an insurmountable obstacle, especially when you need to know the peculiarities of the legislative framework. Take advantage of our top-notch law specialists and get superb grades and 100% satisfaction.
We have highlighted some of the most popular subjects we handle above. Those are just a tip of the iceberg. We deal in all academic disciplines since our writers are as diverse. They have been drawn from across all disciplines, and orders are assigned to those writers believed to be the best in the field. In a nutshell, there is no task we cannot handle; all you need to do is place your order with us. As long as your instructions are clear, just trust we shall deliver irrespective of the discipline.
Our essay writers are graduates with bachelor's, masters, Ph.D., and doctorate degrees in various subjects. The minimum requirement to be an essay writer with our essay writing service is to have a college degree. All our academic writers have a minimum of two years of academic writing. We have a stringent recruitment process to ensure that we get only the most competent essay writers in the industry. We also ensure that the writers are handsomely compensated for their value. The majority of our writers are native English speakers. As such, the fluency of language and grammar is impeccable.
There is a very low likelihood that you won’t like the paper.
Not at all. All papers are written from scratch. There is no way your tutor or instructor will realize that you did not write the paper yourself. In fact, we recommend using our assignment help services for consistent results.
We check all papers for plagiarism before we submit them. We use powerful plagiarism checking software such as SafeAssign, LopesWrite, and Turnitin. We also upload the plagiarism report so that you can review it. We understand that plagiarism is academic suicide. We would not take the risk of submitting plagiarized work and jeopardize your academic journey. Furthermore, we do not sell or use prewritten papers, and each paper is written from scratch.
You determine when you get the paper by setting the deadline when placing the order. All papers are delivered within the deadline. We are well aware that we operate in a time-sensitive industry. As such, we have laid out strategies to ensure that the client receives the paper on time and they never miss the deadline. We understand that papers that are submitted late have some points deducted. We do not want you to miss any points due to late submission. We work on beating deadlines by huge margins in order to ensure that you have ample time to review the paper before you submit it.
We have a privacy and confidentiality policy that guides our work. We NEVER share any customer information with third parties. Noone will ever know that you used our assignment help services. It’s only between you and us. We are bound by our policies to protect the customer’s identity and information. All your information, such as your names, phone number, email, order information, and so on, are protected. We have robust security systems that ensure that your data is protected. Hacking our systems is close to impossible, and it has never happened.
You fill all the paper instructions in the order form. Make sure you include all the helpful materials so that our academic writers can deliver the perfect paper. It will also help to eliminate unnecessary revisions.
Proceed to pay for the paper so that it can be assigned to one of our expert academic writers. The paper subject is matched with the writer’s area of specialization.
You communicate with the writer and know about the progress of the paper. The client can ask the writer for drafts of the paper. The client can upload extra material and include additional instructions from the lecturer. Receive a paper.
The paper is sent to your email and uploaded to your personal account. You also get a plagiarism report attached to your paper.
PLACE THIS ORDER OR A SIMILAR ORDER WITH US TODAY AND GET A PERFECT SCORE!!!
Place an order in 3 easy steps. Takes less than 5 mins.