Right Now Technologies Harvard Case Solution & Analysis

Right Now Technologies

As per the forecast of Right Now, the income growth rate for the new methodology is 67%. In the harmony sheet, it is believed that for the transfer of credit, long term debt and shareholders’ equity remain same. Different accounts grow in the same rate as income grows. In exhibit1, Right Now does not require another store for aback as it might reimburse its debt.
However, the growth rate may be not high therefore, the revenue will reduce.

The acquiring company was eager to pay in a different amount with respect to Right Now’s income which is $50 million. As stated in exhibit 4, those costs range from $11. 5 million to$217 million and the normal cost is $155 million. However, for Gianforte the lowest value that hemight offer is worthy as forecasted by Gianforte.

Options available

• Firstly, the option to try IPO again would not be feasible because as per the case and the return on investment, such an attempt was not as per forecasted and it incurred a loss because the investment required for an IPO is huge and previously this was not in favor of Right Now.

• The second attempt for an IPO could be risky because as stated in this case, IPO was still insufficient and companies were not in favor of IPOs rather they were opting for some other strategies. The market position for IPOs was still on a decline, and there were not many favorable signs of growth in the market. Sales Force.com had a huge impact over the years, which helped it to overcome the market’s inertia.
• It was unclear whether Right Now should go public without the same brand name as it was a risk.
Similarly, as per the selected financial data from sales force.com,exhibit 8 shows that the net income is negative and it would incur a loss if such an attempt is made.Therefore,it would not be worthwhile for making such a decision, hence the attempt for IPO would not be feasible because the current financial position of Right Now is not good and has been in a loss as shown in exhibit2.
Furthermore, the acquisitions and mergers are although,quite advantageous for businesses to grow,however they are risky.This is because the company that acquires a certain company allows the acquired company to keep operating with its name and that the acquired company has to work under a separate name, which is not a good sign because customers then tend to switch to the competitor because their loyalty is affected. Due to this, they make purchases from another business which has entirely different policies, procedures and strategies and this frustrates the consumers.

Acquisitions are preferably done when a company is about to file bankruptcy otherwise a develop business would not let itself get acquired as such businesses are successful enough to overcome any hurdles and spread in the market.
The current scenario of Right Now is not good as the business is incurring losses however,this is the part of doing a business and this does not mean that a business should give up in difficult situations..However, it could be said that one should have confidence in doing the business and should be strong enough to survive................................

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