Product details

By continuing to use our site you consent to the use of cookies as described in our privacy policy unless you have disabled them.
You can change your cookie settings at any time but parts of our site will not function correctly without them.
Published by: Ivey Publishing
Originally published in: 2014
Version: 2014-09-10
Revision date: 22-Oct-2014

Abstract

This is part of a case series. Nypro, Inc, a global leader in manufactured precision plastic products headquartered in Clinton, Massachusetts, had one of the largest employee stock ownership plans in the United States and was often held up as an example of best practices in that area. However, in early 2012, its president and chief executive officer became increasingly concerned that a market downturn might turn into a liquidity crisis. During the 2008 recession, a small percentage of the company's employee shareholders had decided to cash in their shares, which the company was required to repurchase. Although the stock redemptions were draining the company of the funds needed to pursue valuable market opportunities, it somehow still managed to outperform many of its competitors. However, some believed that the company's current trajectory was unsustainable. Its visionary leader had vowed never to sell the company or take it public, but when an offer was made to buy the company, many felt it was time to make this move.
Location:
Industry:
Size:
Large
Other setting(s):
2012

About

Abstract

This is part of a case series. Nypro, Inc, a global leader in manufactured precision plastic products headquartered in Clinton, Massachusetts, had one of the largest employee stock ownership plans in the United States and was often held up as an example of best practices in that area. However, in early 2012, its president and chief executive officer became increasingly concerned that a market downturn might turn into a liquidity crisis. During the 2008 recession, a small percentage of the company's employee shareholders had decided to cash in their shares, which the company was required to repurchase. Although the stock redemptions were draining the company of the funds needed to pursue valuable market opportunities, it somehow still managed to outperform many of its competitors. However, some believed that the company's current trajectory was unsustainable. Its visionary leader had vowed never to sell the company or take it public, but when an offer was made to buy the company, many felt it was time to make this move.

Settings

Location:
Industry:
Size:
Large
Other setting(s):
2012

Related