Groupon India: A Management Buyout Decision
In early 2015, the chief executive officer and the management team of Groupon India, a subsidiary of U.S.-based Groupon Inc., faced a management buyout decision. Buoyed by a high growth rate and huge market potential in India, they wanted more India-specific product positioning and greater control over technology. They explored growth options available to the company, but faced the constraints of being part of a global conglomerate. The management team had narrowed its options to either starting a new venture or acquiring ownership of the subsidiary through a management buyout. How could they ensure they made the right decision? The authors Rajesh Panda, Madhvi Sethi and Pooja Gupta are affiliated with Symbiosis Institute of Business Management Bengaluru, Symbiosis International (Deemed University), Pune, India.