StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

WorkBrain Corp- A case in exit stratgy - Research Paper Example

Cite this document
Summary
The reason for the memo is to guide the management of the WorkBrain Corporation for the strategies the company should look to pursue in the near future. The company has witnessed some drastic changes since it came into existence…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER96.3% of users find it useful
WorkBrain Corp- A case in exit stratgy
Read Text Preview

Extract of sample "WorkBrain Corp- A case in exit stratgy"

Download file to see previous pages

The company is doing fairly well being a private entity. The company has cash in abundance, over $10 million and can easily operate within its realm. Moreover the current investors of the company are happy with the position of the firm in the market and are willing to even invest more if need arises. No investor of the company has expressed any desire to withdraw its investment. These are positive signs for the company and if it wishes to expand then the best alternate is to use cash from current investors who trusted in the vision of the company before it came into existence.

Going public may mean new investors with a different vision that might not be in compliance with the current investors. Saying all this now is the perfect time to go public. Going public would mean more customers for the company. At the moment WorkBrain has to convince its clients that it is financially solvent and in a good position to provide services to them. As the customers cannot see the financial position of a private company they hesitate to get the work done from them. If WorkBrain goes public then all the financial details will be present for the customers to see and approach the company for their services.

The company will benefit tremendously as it would be able to make clients and customers in much larger numbers. Keeping in mind how solvent the company is, it is the best time for WorkBrain to go public and make more customers (Bilimoria, 2007). The best option for the company would be to go with TSX listing. The reason for this is that TSX in future would be more viable. Compared to NASDAQ, TSX has a small-cap market with more some to medium term service providers and financial institutions.

WorkBrain perfectly fits in their category. NASDAQ is more prestigious and has a larger clientele in terms of revenues. It would be fair to say that if WorkBrain needs to go with NASDAQ it would have to come up with a revenue margin of around $75 million. The reason for the company to go public is that it makes it financial statement visible in the market so that potential customers would know how solvent the company is. Going public gives them a chance to come out in the open and make more customers.

Acquisition is a completely different proposition. It deals with selling a part of the company or rather a share of profit with someone who is ready in buying a part of business. Normally the rate at which an acquirer buys part of the business is a much bigger rate because of the goodwill attached with the firm. As WorkBrain has done tremendously well showing consistent profit since it emergence, the takeover would have to pay a lot of money for the acquisition. But there is no need of selling part or whole of the business when the firm is making sufficient profits and it is predicted that the company will only look to grow more in the coming years (Arnold, 2008).

There might be other alternates that the company might look at. Bank loan is one of them but it comes with a cost. A high interest rate has to be paid whenever a company takes a loan from the bank. The biggest advantage of a loan is that the current owners will get to keep the possession of the firm without selling any part of the business to an investor or by going public in the stock exchange. The current owners will get to make the decisions just the way they now do as they will have the control of the firm.

Lack of ability to pay in time may get the business into trouble and if

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“WorkBrain Corp- A case in exit stratgy Research Paper”, n.d.)
Retrieved from https://studentshare.org/business/1484733-workbrain-corp-a-case-in-exit-stratgy
(WorkBrain Corp- A Case in Exit Stratgy Research Paper)
https://studentshare.org/business/1484733-workbrain-corp-a-case-in-exit-stratgy.
“WorkBrain Corp- A Case in Exit Stratgy Research Paper”, n.d. https://studentshare.org/business/1484733-workbrain-corp-a-case-in-exit-stratgy.
  • Cited: 0 times

CHECK THESE SAMPLES OF WorkBrain Corp- A case in exit stratgy

Management Case Study on Sara Lee Corp

What is Sara Lee's corporate strategy?... How has its retrenchment strategy changed the nature of its business lineup?... Prior to 2005, Sara Lee's corporate strategic direction was that of organizational growth, pursued through an unrelated / conglomerate diversification approach.... hellip; Post 2005, Sara Lee adopted an organizational renewal strategic direction which was pursued through a retrenchment strategy....
5 Pages (1250 words) Case Study

Coca-Cola Case Analysis

Coca cola case Study Name Subject Instructor Institution Date Coca cola case Study Question 1: Benefits of moving from Localization to Global Standardization Global standardization is a marketing strategy that has been used by most multinationals when entrenching in new markets.... Coca cola case Study Coca cola case Study Question Benefits of moving from Localization to Global Standardization Global standardization is a marketing strategy that has been used by most multinationals when entrenching in new markets....
3 Pages (750 words) Case Study

The Pivotal Role of Information Technology at Intel

In the case of Intel, it can be seen that the company ought to carefully harness this strategy since it can help to improve efficiency with regards to the way the employees perform their tasks.... 1.... Information and Technology (IT) plays a pivotal role at Intel.... Digital communication technology such as computers, smart phones as well as iPads among other gadgets has significantly gained prominence at Intel....
6 Pages (1500 words) Case Study

Business Strategy Giordano Limited

Giordano Limited was started in 1980 by Jimmy Lai.... t began as a wholesale company of Giordano brand apparel.... Within a span of five years, it had expanded as a chain of retail outlet to various countries and it was competing with other brands such as lacoste .... y 1986, the company experienced massive losses and poor sales as was indicated by the retail in Hong Kong....
13 Pages (3250 words) Case Study

Carnival Corp

This case study “Carnival Corp” discusses Carnival Corp and one of its ships hitting rocks on the Italian coast and the resulting deaths of passengers and crew.... This case study discusses how the CEO of the firm and firm itself managed the crisis by remaining away from the public.... hellip; The author states that the overall problem-related in this case is based upon the reaction of Carnival Corp and how it avoided the PR issues created due to the sinking of one of its ships....
2 Pages (500 words) Case Study

Marketing Strategy: Text and Cases

A paper "Marketing Strategy: Text and Cases" reports that Getty Images website is the most user-friendly and contains the richest content of images that are used by companies for branding.... Gett, therefore,e is considered as the Wal-Mart and the New-York Public Library both combined into one.... hellip; Getty Images is a stock image agency in the United States that has been the market leader and exerted its monopoly in the stock image business....
10 Pages (2500 words) Case Study

Emergency Exit Lighting

Thus, the development of numerous strategies that assist people to escape from scenes of accidents especially in buildings is important and hence the presence of Integrated emergency fire exit lights that aid civilians in exit a hazardous area.... …  The paper "Emergency Exit Lighting" is a good example of a case study on engineering and construction.... The paper "Emergency Exit Lighting" is a good example of a case study on engineering and construction....
13 Pages (3250 words) Case Study
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us