An associate manager at Scotia Capital Markets must make a recommendation to his client, Empire Company Limited (Empire), seeing a possible bid for rival Oshawa Group Limited (Oshawa). Empire was based in Atlantic Canada, with an expanding presence in Quebec and Ontario, while Oshawa competes on a national basis.
There were increasing public rumors that created gossip, which implied that the Wolfe family might be interested in entertaining an offer for the company. In order to evaluate the value of the company accurately, discounted cash flow analysis and comparable evaluations were performed by the associate director in order to ascertain both the standalone and synergy worth of the acquisition goal. Examine the effect of the ownership arrangement in the marketplace for corporate management and he pondered on the strategies that he could apply in order to finance this acquisition.
Publication Date: 10/30/2000
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