Purchasing Get Tanked (GT)
A meeting with Mr. and Mrs. Armstead will need to be arranged in order to understand each party’s motives and expectations. Teams consisting of President Mr. Harding, General Manager Mr. Toth, Controller Ms. Boyce and an external consultant with M&A expertise[ ]should be formed in order to develop a strong strategy to negotiate and supervise the acquisition. The team should consider the following principles before negotiating [ ]:
Understand the other party’s motives
Research
Know your alternatives
Maintain credibility
Terms of the deal are just as important as the price
In order to proceed with the purchase of GT, TRU will need to hire a lawyer and a tax expert in Alberta and begin the due diligence process. This will include auditing the financial statements provided and inspecting the condition of existing equipment. [ ]Furthermore, GT’s existing wholesale contracts with the Alberta farm co-operative will need to be confirmed and secured immediately and the change in ownership will need to be communicated to existing customers through a detailed memo. …show more content…
Toth and Controller Ms. Boyce will secure financing in the amount of $4.5 million from the Alberta Treasury Branch (ATB) immediately after the purchase can be finalized. The funding deficit in the amount of $0.5 million will be funded through capital injection from the President Mr. Harding and his wife, in the form of an additional investment, in a voting preferred share class.
Acquired companies often welcome more streamlined, efficient processes, however, if employee morale is negatively impacted due to union activity for instance, it is more essential to hold onto key personnel and make a smooth transition than to realize efficiencies quickly. [ ]If it is found that Get Tanked as a family-owned business has a strong culture it is better to introduce TRU corporate values as a non-unionized company gradually in a subtle
A meeting with Mr. and Mrs. Armstead will need to be arranged in order to understand each party’s motives and expectations. Teams consisting of President Mr. Harding, General Manager Mr. Toth, Controller Ms. Boyce and an external consultant with M&A expertise[ ]should be formed in order to develop a strong strategy to negotiate and supervise the acquisition. The team should consider the following principles before negotiating [ ]:
Understand the other party’s motives
Research
Know your alternatives
Maintain credibility
Terms of the deal are just as important as the price
In order to proceed with the purchase of GT, TRU will need to hire a lawyer and a tax expert in Alberta and begin the due diligence process. This will include auditing the financial statements provided and inspecting the condition of existing equipment. [ ]Furthermore, GT’s existing wholesale contracts with the Alberta farm co-operative will need to be confirmed and secured immediately and the change in ownership will need to be communicated to existing customers through a detailed memo. …show more content…
Toth and Controller Ms. Boyce will secure financing in the amount of $4.5 million from the Alberta Treasury Branch (ATB) immediately after the purchase can be finalized. The funding deficit in the amount of $0.5 million will be funded through capital injection from the President Mr. Harding and his wife, in the form of an additional investment, in a voting preferred share class.
Acquired companies often welcome more streamlined, efficient processes, however, if employee morale is negatively impacted due to union activity for instance, it is more essential to hold onto key personnel and make a smooth transition than to realize efficiencies quickly. [ ]If it is found that Get Tanked as a family-owned business has a strong culture it is better to introduce TRU corporate values as a non-unionized company gradually in a subtle