Gloria Londono's Calidad de Vida: Funding Decision and Investor Stakes

This case study examines the funding dilemma faced by Gloria Londono, the owner of Calidad de Vida, a suite of day care centers. She is presented with an offer of 3 million euros from investor Victor Serna in exchange for a 25% stake in her company, reducing her ownership from 64% to 51%. The analysis considers the benefits of the funding, such as potential profit increases and the ability to open new centers, alongside concerns about maintaining the company's core values of honesty, transparency, and a focus on the common good. The study also highlights issues with the quality of care in franchised centers. The conclusion recommends accepting the offer to retain decision-making power, mitigate the impact of economic crises, and ensure the delivery of quality care, while maintaining a majority stake in the company and the ability to implement her vision for elderly care.

Social Innovation

Table of Contents
Should Gloria Londono who is owner of a suite of day care centres should accept the 3 million
euros from the investor Victor Serna...........................................................................................1

Should Gloria Londono who is owner of a suite of day care centres should accept the 3 million
euros from the investor Victor Serna.
Victor Serna met with Gloria and offered her a funding of 3 million euros so that she can
open her own new day care centres. In return he asked to have 25% stake within the company. If
this proposal will be accepted by her then total ownership of her will be decreased to 51% from
64%. There are various benefits of this funding option because it will help Gloria to increase the
profits by 11% and different care centres could also be opened by her in different locations.
Currently she is having 12 Calidad de Vida from which only 1 is owned by her rest 11 are
franchises which are providing 5% royalty to her. There are various key values of her care
centres which are honesty, transparency, search for a common good and enthusiasm. She is little
bit confused that all these values will be maintained after accepting the offer of Victor or not.
The doctors who are working in franchises are not following her way of caring to the old people.
All these points should be considered by her and she should accept the offer of him. It
will be beneficial for her because 3 million euros could be used by her to open new centres in
various locations so that she can deliver care services to needy individuals. She could earn more
from wholly owned care centres and her board of directors are agreed to it. The offer of Victor
Serna is very beneficial for Gloria because it will help her to deliver best services to the elderly
people with the help of such centres which are owned by her own. By selecting this option she
can make sure that her way of providing care to old people could be followed by doctors. She
visited a franchise recently and she analysed that the care takers who are working there are not
working properly and they do not follow a proper way to treat old individuals. If offer of Victor
will be accepted by her then she can hire skilled and experienced doctors for her centres who will
perform all their jobs properly. In upcoming era, it will be very difficult for companies to
generate funding for carrying out operations properly therefore by accepting offer of Victor,
Gloria can reduce the possibility of negative implications of economic crisis on her care centres.
It has been recommended to Gloria that she should accept the offer of Victor Serna in
which he is offering 3 million euros for 25% stakes within the organisation. After all of that she
will be the person who is holding maximum shares in the care centres as she will have 51% of
stake. By accepting the offer she can retain her power of decision making in Calidad de Vida and
reduce the possibility of adverse impact of economic crisis on her care centres.
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