WineInStyle

While I am concerned about the credentials of the buyers, I think the best course of action for Eberhart is to sell. Although I am confident that he could find the fix for the cash flow issues, his priorities seem to be shifting towards his family. I think he should look with pride on the business he built, but he also needs to acknowledge the current state of the team. While Khoo is clearly a talented salesman, he is short on financial skills. The company clearly needs to fix its net working capital situation. The recent situation where Costco had to lend the company cash to finance its own large order underscores this reality. Since Eberhart is the executive most equipped to fix this issue, under the current regime, he cannot responsibly step away. Yet, if he sells WineInStyle to a financial buyer, it is safe to assume that they will have the expertise to fix this issue. This assumption is much more likely than a financial buyer having the industry know how or sales expertise that Khoo provides. Therefore, in order to provide himself liquidity, and to ensure the long term existence of WineInStyle, I recommend that Eberhart sell the company.