WineInStyle Going Out With a Bang

I think that Eberhart should sell WineInStyle. I arrive at this conclusion based on several factors and it comes with a couple conditions. Each are explained below.

Factors that lead to "sell" decision

1. Family matters. Eberhart has spent a ton of time sacrificing his family for his business and I get the sense that he would like to cash in on all the time investments he's made. It sounds like his family would like to have him home more too!

2. Eberhart has built an impressive business that has proven it can win in the growing Japanese market. He's grown the company to nearly 500 million Yen of revenue in 8 years and has reached a point where he needs additional capital to grow to the next level. The business fundamentals are there, he needs to figure out how to get the inflow of capital to grow.  If he can't do that without selling a majority stake, then not doing so will likely slow growth and threaten to reduce the value of the company.


Conditions of "sell"

1. Eberhart needs to have confidence that the buyer is legitimate.  He needs to do so to ensure that he isn't leaving his CEO, Khoo, in a tough spot with potentially criminal owners. Additionally, he built the company from scratch and his personal reputation will be associated with the business, even after he sells it.  There is some risk in asking the investors to provide more information about their source of capital, but I believe it is essential.

2. Khoo needs to be on board, not only with the decision to sell, but also with the buyer. He will likely still be at the helm and I believe that it is critical for Eberhart to do right by Khoo by ensuring he is excited about the sale and the vision ahead of the company.

3. Eberhart needs to be certain that the company will not be able to survive if he pursues alternative liquidation methods for him (minority owners, leverage buy out for Khoo or others, etc.). Some of these methods may allow for Khoo and Eberhart to retain control of the company while affording Eberhart more time with his family. It may also further incentivize Khoo to build the business over the long term.