A Case Summary: Yieldex Case

Decent Essays
Yieldex Case Analysis

This case analysis will be about the company Yieldex whose Founder Doug Cosman needs to decide if the company should be sold off or retained with with Tom Shields as CEO. If Cosman decides to accept the buyout offer, it would mean quick security for himself and family, but a lost chance to grow the company. In case, he decides to retain Yieldex, he may have a chance to grow the company with a better valuation. After evaluating the alternatives, I have recommended that the company should be retained with Shields as its CEO allowing possibility for future growth and a higher valuation. I have conducted my decision after analyzing the pros and cons of each alternative listed. I feel that my recommendation will prove better
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This will allow him with support of investors and shareholders. He will have the opportunity to grow the company under Shields. On expansion, the valuation of the company will be higher than the current buyout offer. The implementation of second alternative would involve various steps. Firstly, Shields should be hired as CEO. For this to happen, Cosman and Shields will have to sign a formal agreement. Next, Yieldex has to raise more funds for its growth. This will happen through joint efforts of Cosman and Shields. Lastly, Cosman and Shields need to work together on Yieldex with the support of investors and shareholders. A lot of activities such as recruitment and company restructuring will take place.
It is expected that with an effective implementation strategy in place, Yieldex will soon emerge as an innovative player in its industry and will counter its completion on the basis of its core competencies. The valuation of the company will substantially increase in the due course and therefore the decision of Cosman to retain the company will prove more logical as well as

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