WineinStyle recommendations

I recommend Eberhart and the team to sell the Company for the following reasons:

- Cash strapped: the company despite careful cash management, has seen cash flow issues, particularly due to aggressive geographic expansion in other regions, and headcount growth. With the fixed costs draining cash flow, the company has trouble financing large orders - which prohibits the Company from capturing continued growth. At this point, it sounds like the business is in a downward spiral if there is no new capital injection - no cash = no working capital = declined sales = firing headcounts = downward spiral
- The team has grown the Company from 0 to an impressive scale at ~500m yen in annual sales. Selling for a compelling valuation while the growth rates and market trends are favorable is a great return for the team with minimal risks. Going forward, the market may turn (economic recession, regulatory changes etc) and the investing market may turn (depressed valuation etc). So this might be the right time to capture the rosy market
- Eberhart should however leverage his industry contacts and aim to conduct more diligence on the new investors - particularly paying attention to terms. An upfront payment should be better than contingent payments, especially if there is little information on the potential investors.