Sterling Household Products markets and produces a broad line of cosmetics to cleaning, disinfecting, and sanitizing products and consumer goods from laundry soap. The company reports impressive sales and profits to the investment community and has many highly regarded brand names. Despite a record of success, a deeper investigation of financial measures reveals that growth rates for unit quantities, sales, and profits are not high.
Looking to grow into new markets with strong growth potential, the organization considers getting the germicidal, sterilization, and antiseptic product unit from Montagne Medical Instruments, a business in the health care industry. This acquisition may seem like a natural extension of the experience and expertise of Sterling in the marketplace for household cleaning supplies. Both parties reach a provisional agreement on Sterling and price considers whether the proposed investment adds value given the dangers entailed. Pupils must perform an all-inclusive investment evaluation and analyze both the qualitative and quantitative issues associated with evaluating a tactical acquisition before making a final recommendation.
Sterling Household Products Company a case study solution
PUBLICATION DATE: April 30, 2013 PRODUCT #: 913556-PDF-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING
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