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    Cenabal (A) Decision Sheet

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    arun babu
    The document presents Jennifer MacDonald's decision to raise $200,000 for her business Cenabal on the TV show Dragon's Den. Two investors each offered $100,000 in exchange for 25% equity in the company. MacDonald was unsure which offer to accept as both would provide the needed funds but require giving up partial ownership. The document analyzes the options and risks of each potential deal before recommending that MacDonald accept the offer from investor Jim Treliving.

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    Cenabal (A) Decision Sheet

    Uploaded by

    arun babu
    48 views3 pages
    The document presents Jennifer MacDonald's decision to raise $200,000 for her business Cenabal on the TV show Dragon's Den. Two investors each offered $100,000 in exchange for 25% equity in the company. MacDonald was unsure which offer to accept as both would provide the needed funds but require giving up partial ownership. The document analyzes the options and risks of each potential deal before recommending that MacDonald accept the offer from investor Jim Treliving.

    Original Title

    CENABAL (A) DECISION SHEET

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    The document presents Jennifer MacDonald's decision to raise $200,000 for her business Cenabal on the TV show Dragon's Den. Two investors each offered $100,000 in exchange for 25% equity in the company. MacDonald was unsure which offer to accept as both would provide the needed funds but require giving up partial ownership. The document analyzes the options and risks of each potential deal before recommending that MacDonald accept the offer from investor Jim Treliving.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    48 views3 pages

    Cenabal (A) Decision Sheet

    Uploaded by

    arun babu
    The document presents Jennifer MacDonald's decision to raise $200,000 for her business Cenabal on the TV show Dragon's Den. Two investors each offered $100,000 in exchange for 25% equity in the company. MacDonald was unsure which offer to accept as both would provide the needed funds but require giving up partial ownership. The document analyzes the options and risks of each potential deal before recommending that MacDonald accept the offer from investor Jim Treliving.

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    © All Rights Reserved
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    You are on page 1of 3

    DECISION SHEET

    CENABAL (A)

     SUMMARY
    The main protagonist in the case is Jennifer Macdonald. Though
    she had less business knowledge she had high passion for her
    products and proprietary process that she had personally
    developed. She required investment to further develop her
    business. She participated in a show The Dragon’s Den where
    entrepreneurs pitched and convinced the investors to invest in
    their respective business. Cenabal required amount of $200000.
    MacDonald was chosen as a participant based on the credibility
    of her business and she explained her background, business and
    justification for the required amount for her business in return
    providing 20% share of her company. First the Dragon investors
    opted out then after MacDonald’s explanation one of the
    investors offered to provide $100000 in exchange of 25% share
    and later Jim Treliving the chairman and founder of Boston
    Pizza restaurant offered same deal of $100000 in echange of
    25% share. MacDonald now had the investment she required for
    her business but at the stake of 50 % share of her company. She
    negotiated to 40% of her company the investors declined the
    offer as they required 50% of her company and Jim tried
    convincing Macdonald and put forth his perspective and also
    added a tempting offer that his organisation is already had a
    national distribution company lined up to take on her product.
    MacDonald had to choose how she would raise investment for
    her business.

     Problem Statement
    The problem statement in the case is how MacDonald would
    raise investment of $200000 for further development of her
    business.
     Criteria for Evaluation
    The criteria for evaluation are as follows
    1.Risk
    2.Share of the company
    3. Business Development
    4.Control of the company
    5.Management
    6. Rights

     Alternative for Evaluation


    The alternative for evaluation are as follows
     Option 1:- Accept the offer of the Dragon investor at the
    stake of 50% share of the company.
    This would help in receiving investment and also since the
    dragin investors are experienced this would help MacDonald
    to gain experience and understand the functioning as she
    lacked that since she already developed a good product
    gaining business knowledge at this point is much necessary.
    She would still have hold over her company and risk
    management would be easier since the investors are
    experienced and would know how to manage it.
     Option 2:- Apply for loan
    This would help her preserve 100% of her company with
    her and raise the required investment through loan but this
    wouldn’t help her develop her business as she lacked
    knowledge of business and only had her product and
    proprietorship which wouldn’t help in building the
    business nor managing nor handling risk either.
     Option 3:- Accept only Jim Treliving’s offer of $100000 in
    exchange of 25% share of her company.
    This would help Macdonald in gaining investment for her
    company as well s she would have hold over 75% of her
    company which keeps her as the major stake holder of the
    company and since Jim is already into the food industry
    and had claimed to already have organisation with the
    needed national distribution company lined up to take her
    product would help her develop and expand her business
    Jim would help in risk management as well as develop and
    manage the company since he has 25% of the company .

     Decision
    As the key decision maker I would choose Option 3 which
    is to Accept only Jim Treliving’s offer of $100000 in
    exchange of 25% share of her company as this would be
    beneficial for the company as well as MacDonald as Jim
    has good experience in the field and would help in
    increasing productivity and develop her business and she
    would remain as the major stake holder.

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