Globoforce is a successful provider of online employee rewards and recognition using cloud-based technologies. Since its founding in 1999 it has received substantial investment from venture capital firms and has experienced rapid growth as well as positive media coverage regarding its own positive workforce culture as well as its software, designed to improve employee motivation for its clients.
Globoforce recently planned to take an exit strategy via an initial public offering (IPO). However, at the last minute, management changed its mind and canceled the IPO. This last-minute cold feet by Globoforce's management suggests a rethinking as to whether or not an IPO is the best exit strategy.
Review the background materials and do some research on Globoforce. Below are a couple of articles to get you started:
Alspach, K. (Mar. 22, 2014). Software firm cancels its IPO. Boston Globe
Denison, D. C. (Nov. 4, 2012). Just rewards. Boston Globe
Case Assignment
When you are finished with your research, write a 4- to 5-page paper addressing the following questions:
1.Do you think it is the right time for Globoforce to take an exit strategy, or should it wait longer? Explain your reasoning and what kind of timeframe you propose for Globoforce's exit strategy. Consider its current profitability and its current competition.
2.What kind of exit strategy should Globoforce take? Consider the main exit strategies such as IPOs or a sale to a competitor. Explain the reasoning for your choice.
Assignment Expectations
- Answer the assignment questions directly.
•Stay focused on the precise assignment questions; don't go off on tangents or devote a lot of space to general background materials.
- List supporting references and cite sources in proper format.
- Use appropriate writing style in essay form (organization, grammar, and spelling).
•Review Trident's "Writing Style Guide" for more detail on referencing and writing expectations. This guide is found under "My Resources" in the TLC portal.