EPO: Electricidade Portuguesa Online (A)

Electricidade Portuguesa Online (EPO), founded by two young entrepreneurs in late 2010, sells electricity in Portugal. Two years after its launch, the results seem to vouch for the smooth running of the company and the online communication-based strategy it has followed up until this point. However, the partners have exhausted their liquid assets and must decide how to get new funding. Among other options, a prestigious investment fund seems interested in becoming a shareholder. The case enables analysis of the real need for cash, the various alternatives on the table for financing and, above all, what the reaction will be and how the partners' lives could change when faced with each of the alternatives.
Collection: IESE (España)
Ref: ASN-61-E
Format: PDF
Number of pages: 12
Publication Date: Apr 20, 2016
Language: English, Spanish
Review date: Mar 24, 2017

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Description

Electricidade Portuguesa Online (EPO), founded by two young entrepreneurs in late 2010, sells electricity in Portugal. Two years after its launch, the results seem to vouch for the smooth running of the company and the online communication-based strategy it has followed up until this point. However, the partners have exhausted their liquid assets and must decide how to get new funding. Among other options, a prestigious investment fund seems interested in becoming a shareholder. The case enables analysis of the real need for cash, the various alternatives on the table for financing and, above all, what the reaction will be and how the partners' lives could change when faced with each of the alternatives.
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Year: 2012
Geographic Setting: Portugal

Learning Objective

The objective of this case is to identify the problem or decision that the partners face, the causes that have got them to that situation and the alternatives they have. The case enables the company's financial situation to be analyzed in detail and a forecast to be made of the results and needs for cash in three years. This numerical analysis should allow the discussion to focus on finding the best alternative for the company and for the partners in order, eventually, to finish by debating what the impact could be on each of them and how their lives can change. Although the case is designed to be taught in the field of analysis and business situations, it can also be used in the first sessions of a course on accounting and control.

EPO: Electricidade Portuguesa Online (A)

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"EPO: Electricidade Portuguesa Online (A)"