Alibaba
Boeh Paul W. Beamish Richard Ive)! School of Business, The University of Western Ontario It was April 2004, and Calvin McElroy had just closed the CQUAY ("seek way") financials for the quarter. A year earlier, the board had asked McElroy to shape the company into an acquisition target over the next 18 to 24 months. There were no imminent acquisition discussions, and recent customer traction and the sales pipeline seemed to merit raising growth capital instead of following the acquisition-focused plan. McElroy wanted to keep his stockholders and board happy by executing the plan they had given him, but he did not want to jeopardize possible customer growth. If he refocused the plan, McElroy feared it might change acquisition opportunities. Without further contracts, the existing cash would sustain the company for only another six to eight months. McElroy thought the most likely outcome was to sell the company, but he needed to make the company more attractive. He planned to present options and a recommendation to the board of directors later that month.