Nuntucket Nectars

Nuntucket Nectars is a privately owned company that sells fresh beverages. The founders of the company have reached a crossroad. They desire to expand the company but are at a loss on the best method to proceed with considering the associated risks with the different methods. The founders have four choices, they can continue operating the company as a standalone business, they can undergo an IPO, they can have a strategic partner invest in their business, or they can sell the company to a large public company. Whereas the owners of the company are comfortable with either of the options, they would prefer an option that does not radically change the organization culture and one that maintains them as the head of the company (Nuntucket Nectars, 2000).
Selling the company to a large public company is an attractive option. However, the founders are at a loss on how to handle the negotiations with the different interested buyers without causing an alarm within the organizations ranks. Selling the company wholly
also creates the challenge of how to determine the true value of the company so that the founders can get the best value for their efforts. In this case, selling the organization to a large organization with the advice of a large financial institution may help the founders get the best value for Nuntucket Nectars company. However, the structure and culture of the company is likely to change radically (Nuntucket Nectars, 2000). The new owners are likely to bring in new heads to replace the founders as the heads of the organization. The fate of the employees is not guaranteed in this option. Given the possible outcomes associated with this option, they should avoid it.
The founders of the company have the options of maintaining the status quo. In this option, the culture of the organization will remain. The organization has a simple, casual structure. Any employee at any level in the organization can speak with the founders and air his or her views. The founders of the company will remain the heads; however, the organization is likely to experience slow growth because the only resource available for expansion is the profits. Whereas this option maintains the organization culture and ensures the fate of the companys employees is certain, it does not provide the organization with the means for expansion. This option limits the organization but offers security to both the employees and the founders (Nuntucket Nectars, 2000).
The company has the options of undergoing an IPO. Whereas undergoing an IPO will provide the organization with the resources needs for expansion, it will also place other regulatory requirements on the organization that are likely to change the culture and structure of the organization. Unlike privately owned companies, public companies observe strict financial obligations, including tax return reporting and personal responsibility. This option does not offer security for either the founders or the employees. Their fate is in the hands of a board that makes executive decisions in a public company. Although this option will avail the finances required for expansion, it would place requirements on the company that will affect every aspect the founders are trying to preserve (Nuntucket Nectars, 2000).
Having a strategic partner is the best option of the company. This option has worked for the company in the past and certainly likely to work again. The founders of Nuntucket Nectars, Tom and Tom, formed a strategic partnership with mike Egan, which enabled them to propel the company to its current success. In the partnership, Egan provided 600,000 dollars to the company in exchange for 50% stake in the company. Despite the controlling stake, Egan does not interfere with the day-to-day running of the organization. He only plays the role of an adviser to the founders. The founders could form a strategic partnership with a willing investor (Nuntucket Nectars, 2000). The investor must be willing to invest in the company on the condition that he or she does not interfere with the day-to-day operations of the company. The investor will only play the role of an adviser to the founders. This option is the best for the company because it avails the finances the company requires for expansion and guarantees that the fate of both the employees and founders is secure.




















 References
Nuntucket Nectars. (2000). Nuntucket Nectars. Massachusetts: Harvard Business school