Nantucket Nectars: The Exit

Nantucket Nectars has been a success since its inception in 1990. With a focus on distribution and a commitment to quality, taste, and brand storytelling, Tom Scott and Tom First built a $30 million brand in just seven years. However, as the company continues to grow, Scott and First need to decide whether to stay onboard and reap the benefits of their company’s success or sell Nantucket Nectars while they’re ahead. The first option of selling the company faces both opportunities and obstacles. Selling the company will give it access to a more experienced management team, since a bigger company will be acquiring the brand. In addition, it will provide the company financing, which will accelerate its growth. On the other hand, proceeding with the sale of Nantucket Nectars has the disadvantage of the uncertain outcome of the current 100 employees. The potential buyer could fire all the employees and even keep the two Toms from running the company. This option also poses a threat to the laidback Nantucket Nectar company culture, which could transform into a more corporate, …show more content…
This options ensures that the two Toms have continued involvement in Nantucket Nectars, employee’s jobs are safe, and the company culture and story are not in jeopardy. While this may seem like a safe bet, it is important to consider the opportunities this option is passing up. A huge disadvantage to cancelling negotiations is that Nantucket Nectars loses out on the chance of funding from a larger firm, which can assist in their expansion strategies. Most importantly, the company has been seeing tremendous growth, thus the best time to get a great valuation is when sales are on an upslope trend. By passing up the sale, the Toms risk their sales revenue going down and selling the company for a lower valuation in the future. If selling the company is desired by the Toms, the time to do it is now that they’re