Entrepreneurship Nantucket Nectars Has Spent

Entrepreneurship

Nantucket Nectars has spent years building its reputation and has managed to become consolidated as a strong and stable entity. Recently, the company has been courted by five different companies, each intending to purchase the firm.

The irony in the situation is that the negotiations had started based on a rumor that Nantucket Nectars was negotiating its purchase by Triarc. This was not true and the company is not aware of the origins of the rumor, but fact is that the news published in the media was enough to capture the attention of firms such as PepsiCo, Ocean Spray, Tropicana and even Triarc.

The corporations quickly approached Nantucket Nectars and manifested their desires to purchase the company. Negotiations were conducted outside the offices of Nantucket Nectars in order to ensure privacy and not to create turmoil at the organizational level.

Nantucket Nectars has as such come to simultaneously negotiate its acquisition by several companies, but a decision has yet to be made. Aside from the fact that the company was not initially looking for a merger with a larger size corporation, the difficulty in making a decision is even further increased by the fact that Nantucket Nectars had been in fact considering becoming a publicly traded institution.

The organization had been following a financially ascendant trend and was considering an initial public offering. Still, going public has its own disadvantages, such as loss of control, being under more public scrutiny, having to answer to shareholders, registering decreased net profits and other such instances.

In this context then, a question is being posed relative to the decision which should be made by the managerial team at Nantucket Nectars. Particularly, should the company go public, stay private or should it sell its business altogether? The answer to this question is rather straight forward, and it sees that the company should stay private. In addition to this, it should continue to prospect the market and negotiate with prospective buyers in order to further assess its market value.

The rationale for the recommendation to stay private is represented by the following:

Nantucket Nectars has attained financial stability and profitability by itself, through a well crafted and executed business model, which should be preserved

The company is following an ascendant path that could be jeopardized by sudden movements

The current economic climate is quite unstable and propels economic agents, including Nantucket Nectars, to focus on stability and consolidation, rather than dramatic changes in their structures.