Cain And Able Case: Candance Leak Merger
Recommendation
Based on the information presented in the Cain and Able case we believe Candance Leak should pursue merging specifically with Happy Tails or company with similar products. This is the best opportunity because it will allow Leak to spend more time with her family allow Cain and Able the chance to grow and be sold for a worthwhile amount.
The merge will allow Leak to spend less time working because merging with a similar company allows business activities to be shared (ie. Only one business partner will have to attend a sales call or trade show for both product lines). The merge with Happy Tails (or a similar company) will align company synergies and core competencies due to similar products, distribution networks, and ultimate …show more content…
Bumps up revenue making it an appealing buy 2. PetCo 40% experience with sales with larger firms know they won’t run into the ground 3. Many opportunities but inability to reach a competitive volume 4. Penetrate other large retailers like PetSmart 5. Too soon to get out- industry is booming while her growth is stagnant a merger could help get back on track
Prize= gaining a partner, improving volume and brand presence… gaining more market share. Therefore, potentially receiving a higher valuation when sale occurs.
With a merger her workload would be decreased because of the help of her business partners and she will have less personal stress because the eventual sale of the company.
Context
Despite having surprising and exponential growth at the beginning, Cain & Able’s growth has become stagnant over the last two years. Candance Leak, founder of Cain & Able, faces a dilemma- she no longer wants to spend the majority of her time trying to overcome the obstacles of growing a stagnant business with her ultimate goal of a family in …show more content…
However, she knows that Cain and Able could become susceptible to similar failures because many mom and pop stores closed (hurting sales volume) and she cannot alone reach economies of scale (sales numbers are likely to mimic economic trends even though the pet industry is booming).
Leak does not want to simply give-up all hope for Cain & Able because of all the sweat equity she has put into it and cares about the brand she created. She definitely wants to spend less time working keeping this in mind she foresees four options regarding the future of the company: (1) hire a CEO (MBA from Texas) (2) sell the company (3) merge with a pet product company or (4) raise venture capital funding to expand the business.
Problems: recession- personally affected, small businesses that sold her brand disappeared competition- other speciality shampoos (Pet Head by Bed Hed and Martha Stewart Pets) No growth since 2008, small businesses have failed and she wants to be successful she hasn’t done all of this for nothing.. but she is at high risk so she needs to do
Based on the information presented in the Cain and Able case we believe Candance Leak should pursue merging specifically with Happy Tails or company with similar products. This is the best opportunity because it will allow Leak to spend more time with her family allow Cain and Able the chance to grow and be sold for a worthwhile amount.
The merge will allow Leak to spend less time working because merging with a similar company allows business activities to be shared (ie. Only one business partner will have to attend a sales call or trade show for both product lines). The merge with Happy Tails (or a similar company) will align company synergies and core competencies due to similar products, distribution networks, and ultimate …show more content…
Bumps up revenue making it an appealing buy 2. PetCo 40% experience with sales with larger firms know they won’t run into the ground 3. Many opportunities but inability to reach a competitive volume 4. Penetrate other large retailers like PetSmart 5. Too soon to get out- industry is booming while her growth is stagnant a merger could help get back on track
Prize= gaining a partner, improving volume and brand presence… gaining more market share. Therefore, potentially receiving a higher valuation when sale occurs.
With a merger her workload would be decreased because of the help of her business partners and she will have less personal stress because the eventual sale of the company.
Context
Despite having surprising and exponential growth at the beginning, Cain & Able’s growth has become stagnant over the last two years. Candance Leak, founder of Cain & Able, faces a dilemma- she no longer wants to spend the majority of her time trying to overcome the obstacles of growing a stagnant business with her ultimate goal of a family in …show more content…
However, she knows that Cain and Able could become susceptible to similar failures because many mom and pop stores closed (hurting sales volume) and she cannot alone reach economies of scale (sales numbers are likely to mimic economic trends even though the pet industry is booming).
Leak does not want to simply give-up all hope for Cain & Able because of all the sweat equity she has put into it and cares about the brand she created. She definitely wants to spend less time working keeping this in mind she foresees four options regarding the future of the company: (1) hire a CEO (MBA from Texas) (2) sell the company (3) merge with a pet product company or (4) raise venture capital funding to expand the business.
Problems: recession- personally affected, small businesses that sold her brand disappeared competition- other speciality shampoos (Pet Head by Bed Hed and Martha Stewart Pets) No growth since 2008, small businesses have failed and she wants to be successful she hasn’t done all of this for nothing.. but she is at high risk so she needs to do