Nantucket Nectars

Nantucket Nectars was created off the “entrepreneurial spirit” of its founders, Tom and Tom. Along the way came many challenges for Nantucket Nectars to succeed but nothing quite like the idea of other companies wanting to acquire Nantucket. With this came several questions Nantucket had to ask itself such as: If they do proceed with the sale, how should they negotiate for a maximum price? How could they hold the meetings with the prospective buyers and not let the employees find out about the transaction prematurely? Will it generate bad publicity if they decided not to sell after the auction? Should they organize an auction to sell the company or go a different route? Nantucket would have to look into these questions as well as others such as the pros and cons of either selling, remaining independent, or heading for an IPO. Determining the value of Nantucket by using a proper valuation method will be the most important thing for Nantucket to complete before discussions are held with any potential acquirers trying to break into this new age beverage segment, but not only numbers should be considered when determining value but also the significance of skills and brand that drives Nantucket’s corporate value.

Pros & Cons

Remaining Independent

• Pro: Tom and Tom would be able to remain the sole owners of the business and other management channels would not be telling the Tom’s how to run their business they built from the ground up.

• Pro: The “Nantucket Nectar” story would be preserved and Tom and Tom would not have to worry about how the public would respond if they were sold.

• Pro: Brand would not be washed away with the appeal of another high profile brand. Nantucket will be able to control how they present their brand through innovative marketing tactics the way they want to and not under anyone else’s control or decision making power.

• Con: Distribution could still remain a very big concern as growth continues. If Nantucket were to partner or...