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Fabric Super-Store (B)

David Simpson; Colin McDougall;

商品編號:9B11M036
出版日期:2011/08/15
再版日期:
商品來源:Ivey
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商品類型:
涵蓋議題:Valuation for Acquisition, Valuing a Franchisor's Contribution, Source of Financing, Deal Terms and Offer Sheets
難易度:4 - Undergraduate/MBA
內容長度:2 頁
地域:Canada
產業:Miscellaneous Retail;
事件年度:2010

The two entrepreneurs met with Fabric Super-Store’s executive management team to present an offer to purchase the Kitchener store and a right of first refusal (ROR) on a second, nearby location in Cambridge. Upon consideration and rejection of the ROR, management responded with an intriguing counter-offer in terms of a “vendor take-back” offer (VTB). Fabric Super-Store offered vendor financing terms over three years provided the entrepreneurs purchased both locations. Somewhat complicating their decision to buy was discovering that the Cambridge location had machinery much newer and larger than that in the Kitchener store. Should Cambridge be sold to another party, it could threaten the success of the Kitchener store. The entrepreneurs concluded that they would either need to buy both locations, or pass on the opportunity completely. What to do?

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