Scott Peterson Company

857 Words2 Pages
bulb-icon

Recommended: Business negotiations

1. Evaluate the company. How much do you believe the company is worth? Bring to class a written bid showing how much you would pay for it if you were Scott and Peterson.
The company’s total assets is around $2.4 million and company’s Net Sales is around $5.5 million with the Net Profit of around $0.14 million. From the historical performance provided in the case, it shows there is a gradual growth in the profitability and the overall sales. It depicts the potential of the company to grow. Under the right stewardship this company could make around half a million of profit in a calendar year in next three years. However I believe I would not bid this company by the rule of thumb, which says the value of the company should be 3 times the net sales. …show more content…

The main issue for the company not to grow is the differences in thoughts between two owners. In order to resolve the ownership situation, both Scott and Peterson have to be ready to sit down in a meeting. They should probably include their financial managers to decide that one of them will buy out the company. Or they should both come to conclusion to sale the company to third party. Buying the company from either one of them is not going to be a cheap affair as one of them needs a lot of financing backing up. One should be ready to change the organizational culture and improvise the business processes to adopt a successful transition. If one of the buyers is not ready for the changes and thinking of continuing the regular processes then I would recommend them to sale out the company to third …show more content…

I would like to raise at least 20 % of the investment from them and I have to pay them very low personal interest. If I am able to raise 20% then I could start seeking financing from bank or provide my plan to SBA to assist me.
• Banks and SBA: The portion of the acquisition and other personal assets would act as collateral needed for the bank. To attract bank I would offer 10% share of the company to the bank after acquisition process is completed. Before I seek any loan from bank I would discuss my business plan with SBA’s to find out the better financing options
• Venture Capitalists: I would offer 15% of share to the venture capitalists who may want to invest for my company for around 2 million. Total acquisition cost is around $7 mil. I will be raising 2 million from my family members, 2 million from venture capitalists and 3 million from financial institution.
4. Assume you do purchase the company: What specific actions would you plan to take on the first day? By the end of the first week? By the end of six months? Explain how and

Show More
Related

  • Sba Loan Benefits

    809 Words  | 2 Pages

    An SBA business loan is one of the most popular methods of funding a small business. Basically, this type of loan offers banks a guarantee on any small business loan, giving banks more reason to approve the loan.

    Read More

  • Dred Scott Case Analysis

    1559 Words  | 4 Pages

    The Dread Scott decision exacerbated the debate over slavery by declaring that blacks cannot be citizens and that Congress does not have the power to prohibit slavery in the territories, which further divided the North and the South. The decision also deeply affected politics, and was one of the causes of the Civil War.

    Read More

  • An Analysis of Cisco's Stock Market

    2593 Words  | 6 Pages

    Based on the Terminal P/E and the cost of equity I made a sensitivity analysis chart through which I came up with a price of $33.37. This chart shows the different price ranges of the stock which could be possible if the Terminal P/E went higher or lower compared to the Cost of Equity.

    Read More

  • Costco Case Analysis Essay

    811 Words  | 2 Pages

    The case begins with an individual shareholder, Margarita Torres, who first purchased shares in 1997 and who is trying to evaluate the operational performance of the business in order to make a decision rather or not purchase more shares

    Read More

  • Ecton

    692 Words  | 2 Pages

    If I were asked to run Ecton during this period, I would suggest they utilize option two and seek out an acquisition partner. The benefits clearly outweigh the negatives in the scenario. The immediate cash, employs, and, marketing power is what this innovative product requires to capitalize on the large sales this technology is capable of capturing. By staying independent the time lost trying to create new value streams and processes seems unnecessary if the option to avoid this while providing the optimal return on investment to the shareholders exists. Bottom line, maximize shareholder return and create an optimal environment where this budding technology can rapidly grow.

    Read More

  • Ice Delights Case Study

    1673 Words  | 4 Pages

    •     The franchisees would have to raise approximately $750,000 of outside financing to fund the venture

    Read More

  • Nantucket Nectars

    1257 Words  | 3 Pages

    They had several questions that they would like answered. If they do proceed with the sale, how should they negotiate for a maximum price? How could they hold the meetings with the prospective buyers and not let the employees find out about the transaction prematurely? Should they organize an auction to sell the company? Will it generate adverse publicity if they decided not to sell after the auction?

    Read More

  • Swot Analysis Of Whole Foods

    1323 Words  | 3 Pages

    After conducting a basic 10 year financial analysis of the company, it has become evident that even with a highly competitive market structure they are able to improve on their performance. Ranging from 2004 to 2013 financial information, the company has shown a significant increase in their sales revenue roughly $3865 million sales in 2004 to almost four time that valuing $12970 million in 2013, which was an “increase of 10.4% over the 53 week prior year” The company’s growth strategy has been to diversify its product market and make them...

    Read More

  • Scott Peterson Case Analysis

    784 Words  | 2 Pages

    In November 2004, Scott Peterson was found guilty and charged with two counts of murder for the death of his 8-month pregnant wife Laci Peterson, and prenatal son Conner Peterson. It was not until one month later, the jury had recommended Scott Peterson to be sentenced to death by lethal injection. Before his conviction, there was no substantial evidence submitted during the trial that linked Peterson directly to the death of his wife and their unborn child. In fact, the only physical evidence presented to the court was a single strand of Laci Peterson’s hair attached to a pair of Scott’s pliers. The evidence was deemed circumstantial on the basis that it did not deliberately constitute as the murder weapon. The pliers were not found alongside

    Read More

  • Options for Financing the Purchase of a Website

    537 Words  | 2 Pages

    SBA Loans – Many websites today are purchased with 7(a) SBA loans. There are conditions however in getting one to buy a website. You still have to put down between 15%-30% depending on the lender, you must have good or excellent credit, and the website has to have sufficient cash flow to support the debt service of the loan. The loans are typically 10 years in duration and 2-3 points above the prime interest rate. The process of getting an SBA loan to buy a website can be a tedious one and can take one month to six months to complete/fund.

    Read More

  • Fellers Bakery Case Study

    1463 Words  | 3 Pages

    Growth can overwhelm a business if it is not handled effectively. There are both internal and external risks to growth. Some internal risks that Fellers will face are management risk, not having enough personnel to handle the new demands, having to train or retrain employees; money concerns, such as not having enough cash flow to grow; and quality and quantity control. Some external risks to consider would be related to competition, staying ahead of the curve, continuously searching and retaining customers and staying abreast to what the customers want. Fellers has made her business successful thus far and needs to continuously keep in mind how she became successful to begin with and capitalize on her strengths. Before she decides to grow, she needs to ask herself, at what pace or rate should she grow (CSU,

    Read More

  • Kind LLC Case

    521 Words  | 2 Pages

    The main obstacle arising during a rapid growth is maintaining a corporate culture. Due to this the company, which in this case is Kind LLC must find a way to implement ways to promote and maintain their culture. That culture is their emphasis in kindness in both the business and public setting. Kind must viciously strive to keep their employees connected to the corporate mission of kindness and engaged them as much as possible. This would in result lead to making great snack bars, offering “kind” services, giving back to the community, such as the current endeavors that the founder is pursuing, and last but not least creating a great environment for our stakeholders, such as our clients, employees, etc.

    Read More

  • Compare And Contrast Paul's Case And A & P

    1061 Words  | 3 Pages

    Despite parental efforts to control children, teenage rebellion proves as an unavoidable staple in individuals' maturation. For some, this rebellion proves brief; for others it results in devastation. Regardless, this necessary and natural process often includes defiance of societal expectation in addition to domestic contradiction. Society's typical rejection of teenage rebellion destroys innocence, disturbs peace, and often inhibits social progress.

    Read More

  • Nike: Company Financial Analysis

    1135 Words  | 3 Pages

    The final model used to compute the cost of capital was the earning capitalization model. The problem with this model is that it does not take into consideration the growth of the company. Therefore we chose to reject this calculation. The earnings capitalization model calculations were found this way:

    Read More

  • Aol Vs Time Warner Merger Essay

    2391 Words  | 5 Pages

    ...not just the financial issues for example equity shares, turnover and profitability. Before any growth entrepreneur need to have a plan to ensure that they know the risk and what problems will be appear and the solution to solve the problem. Although a growth plan is times consuming to be preparing but other company would like to look at the plan before doing anything. Also entrepreneurs always need to beware of the company vision is it similar to each other, culture and the communication also will affect the result and should be considered carefully. Those are the main reasons to make company businesses successful or failures in few years. Furthermore, this method cannot predict one thing is the timing, sometimes entrepreneurs miss the right time to growth their company because of the physical problem like earthquake or hurricane occurs which no one can predict it.

    Read More

More about Scott Peterson Company

Open Document