Eberhart’s parable in Japan was truly remarkable. From a foreigner in a deeply conservative society, to disrupting an industry in the face of often criminal opposition and unfair competition. Indeed, his humbleness to leave the company in CEO Khoo’s hands to spend more time with his family and allow the company to grow even further, was just another testament to his business intuition.
Now, facing the latest question, this time about whether to sell the company, do deeper due diligence or follow the advice of half his board and just trust the new buyers, Eberhart should carefully consider his move. After all, it was determination and hard work in the face of infinite challenges that build WineInStyle.
I would argue that he should set out a process of careful due diligence on the buyers before agreeing to any move. And that he aim to sell the company to a set of investors that he would judge able to carry out the mission of the company as well as able to adequately support the new CEO in his challenges.
This is for a number of reasons:
- Eberhart’s trajectory is clearly shifting toward wanting to spend more time at home in Palo Alto, and the sale would allow him to complete that move
- The company, his baby from the beginning, needs not only deep pockets but also solid moral. The numerous examples of unfair business practices mean there is a significant risk of leaving the company with some rather shifty investors
- Lastly, as demonstrated by the change of CEO a few years prior, further growth in the Japanese market would require not only the local knowledge and network that the new CEO provided, but also perhaps local capital to complete the ultimate step to becoming a fully Japanese company and therefore achieving fully acceptance in the local market
Now, facing the latest question, this time about whether to sell the company, do deeper due diligence or follow the advice of half his board and just trust the new buyers, Eberhart should carefully consider his move. After all, it was determination and hard work in the face of infinite challenges that build WineInStyle.
I would argue that he should set out a process of careful due diligence on the buyers before agreeing to any move. And that he aim to sell the company to a set of investors that he would judge able to carry out the mission of the company as well as able to adequately support the new CEO in his challenges.
This is for a number of reasons:
- Eberhart’s trajectory is clearly shifting toward wanting to spend more time at home in Palo Alto, and the sale would allow him to complete that move
- The company, his baby from the beginning, needs not only deep pockets but also solid moral. The numerous examples of unfair business practices mean there is a significant risk of leaving the company with some rather shifty investors
- Lastly, as demonstrated by the change of CEO a few years prior, further growth in the Japanese market would require not only the local knowledge and network that the new CEO provided, but also perhaps local capital to complete the ultimate step to becoming a fully Japanese company and therefore achieving fully acceptance in the local market
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