Yieldex (A) Harvard Case Solution & Analysis

Yieldex (A) Case Study Help

Question: 4

Tom Shields is demanding a 50% share in common stocks which will make him the 50% owner of the firm and eligible of the 50% firm’s value which will eventually results in the loss of equity and power of Cosman over his firm. As Washings stated that such type of agreements is settled through providing 10% share in common stock to the position for CEOs or CFOs.

Therefore, I would suggest Cosman the alternate deal that will help in negotiating with Tom Shields. As an alternative deal I would propose 10% preferred share along with an annual salary of $250,000 with additional bonus on the basis of performance as well as all facilities provided by the company to its employees. In addition to this, he will be eligible for getting more common stocks as the company grew larger as a part of annual bonus in order to increase his ownership in the company.

Question: 5

Tom Washing is a reliable person for getting advice and assistance in terms of his abilities and experience as he has the experience of consulting technology firms and raising funds for them. In addition to this, he has an experience of 13 years as a corporate and securities lawyer for technology companies, investment banks and venture capital firms which makes him a good choice for advice and assistance in financial and legal matters as well as for future growth of the company.

Although, Tom Washing is the right person for advice, but it is better to have more than one consultant, Cosman should consult a person having expertise in the management field and human resource field that will help in finalizing such deal settlement with the Mr. Shields and give more insights about the future prosperity of the business.

Conclusion

Doug Cosman, a founder and chief technology officer at Yieldex, putting efforts to acquire more and more fund raising to start and strengthen its company, Yieldex. He received a call from his friend Smilion, vice president of Turn Inc. (Turn), he wanted to acquire Yieldex for 2 million in cash and with a 2 million Turn’s stock.If Cosman accept the Turn’s acquisition offer, he will gain $2,428,398 out of total $4 million, after paying the profits to his investors.Thus, the Turn’s offer should be considered because it yields high benefits and will be a healthy option for Cosman in term of financial returns.................................

 

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