Eberhart has two main issues:
1) He needs cash to support growth
2) He wants to find a way to spend more time in PA and stop overlooking operations in Japan
At first, he alternative of taking the deal with the Japanese investors seems very attractive. However, the downside is too big and I don't think he should take it. There are so many questions around each of the advantages the proposal has, that it seems too risky.
Pros?
-Access to cash. Who are the investors? Do we have any guarantee that they are not competitors seeking to elimite Wine InStyle? Aren't there any other ways to increase cash?
-Quality time with his family. Does Eberhart want to continue with growth at the expense of losing the mission and values of the company he started? Is he willing to put at risk the respectable reputation that he obtained through Wine InStyle?
-Vote of confidence to the japanese CEO. Is the CEO who has only been around for 2 years ready to continue growing the business under new management? Will he be able to deal with the different challenges that may come up in the future?
Given the questions analyzed above and how hard it seems to come up with a mitigation plan for these risks, I think he should not take the deal. However, if Eberhart's incentive to go back to his family is so strong, the only way I could see this happening is with a certification.
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