Globoforce is a successful provider of online employee reward and recognitions using cloud –based technologies. Since its founding in 1999 they have received substantial investment from venture capital firms, and have experienced rapid growth as well as positive media coverage regarding their own positive workforce culture and their software designed to improve employee motivation for their clients.
Globoforce recently planned to take an exit strategy via an initial public offering (IPO). However, at the last minute they changed their mind and cancelled their IPO. This last minute cold feet by Globoforce’s management suggests a rethinking as to whether or not an IPO is their 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: Worker appreciation is a way of life at this company. Boston Globe.
Once you have thoroughly reviewed the required background materials on exit strategies and finished your research on Globoforce, write a 3- or 4-page paper addressing the following questions:
- Do you think it is the right time for Globoforce to take an exit strategy, or should they wait longer? Explain your reasoning, and what kind of timeframe you propose for Globoforce’s exit strategy. Consider their current profitability and their current competition.
- What kind of exit strategy should Globoforce take? Consider the main exit strategies discussed in Reuvid (2011) and the Pearson tutorials. Explain the reasoning for your choice.