Essay on Midwest Light Company Case Study
Midwest Lighting, (MLI) Inc was a company dealing with the manufacture of customized designed fluorescent light fixtures for commercial, and other institutional applications. This company was formed by Daniel Peterson and Julian Scott in 1956 in Flint, Michigan. Daniel was in charge of the engineering and finance sectors while Walters headed the Sales and design unit of the company. As the company grew, personal differences between the two emerged and Daniel bought out Walters from the company and brought in Richard Scott as his new business partner. Daniel became the treasurer of the company and Scott the company president (Adams & Spinelli, 2012, p. 385).
The company grew tremendously to steady sales of about …show more content…
Personally, I believe the company is worth over $7 million considering the current net assets, net sales and the steady profitability of the company which has been projected to increase massively in the following years. The projection of the company’s eminent growth in profitability and sales is a very positive indicator that under the right stewardship the company could easily make profits of way over half a million dollars a year (Ward, 2014, para. 3). Therefore, any incoming investor planning to buy the company would have to fork out this amount of money to Peterson and Scott to get it fully and wholly.
I would start my bidding for the company at $6 million dollars and allow Peterson and Scott time to consider the offer and seek any necessary advisement. This would allow the opportunity for a bargain between the two and I, with a final offer of $6.5 million dollars just $500,000 shy of my personal company current worth value. If the two would immediately consider the offer, it would be time to divide and conquer. This would involve approaching the two individually to buy their worth in the company. Since Peterson has a fifty plus share of the company, his buyout value would be more than that