Birch Paper Company Case Solution

As the VP of Sales for Excalibur I am required to negotiate with Knight Engines Inc to come to an agreement for a rush order of 8000 pistons within two weeks. It is in my personal interests to deliver a substantial profit to Excalibur for the benefit of shareholders. However, negotiating a deal with Knight may be the only chance for Excalibur to avoid a major loss in this quarter. Consequently, I aim to secure a profitable contract but am willing to trade current profit for future gain.

I would classify Forest Hill Paper Company (FHPC) as a “small paperboard manufacturer that produces a broad line of paperboard in large reels.”

Regarding the markup price, the top management is not allowing to go below 33.3%. Though some of the other options to be consider like on basis of past good relations with Konig explain them the

In Energetics meets Generex negotiation, I was acting as a Chief Operating Officer (COO) for Energetics Corporation and my opponent and my classmate Chace Eskam was acting as a COO of Generex Corporation. In this deal, as a COO I was supposed to sell the Wind energy division of the Energetics to Generex. Energetics Corporation was in desperate need of cash due to bankruptcy. Another hurdle was that I could not sell three different locations of Wind plants individually. My company needed cash within three months with no additional terms added to this deal. My another best alternative was to sell all the assets of Wind Energy division to generate some cash if deal with Generex fails in this negotiation. Our negotiation went on for 15-20 minutes during class time and deal was set in $247 millions. My opponent Chace was very tough in this negotiation to deal. He was very prepared with facts and numbers before he came to the table. My opponent asked me lot questions such as the depreciation of the property, equipment’s life, taxes etc. After having lot of discussion we ultimately came to the conclusion that Generex will pay Energetics $247 million right away in cash to purchase Wind Energy division from Energetics.

Both the family, and the Wal-Mart acknowledge that the family was detained. The Wal-Mart associates believed that they had the right to stop the family based on the assumption of shoplifting, although they should not have physically restrained the family from advancing out of the store, nor denied Debra McCann’s offer of verifying the family’s identity.

The days sales of inventory, days sales outstanding and days payable outstanding kept similar over the past three years. Since we cannot get the industrial average level, we cannot determine whether the level of Butler Lumber Company is reasonable. However, we can notice

NCB is a manufacturer and distributer of a wide range of office products. In Canada, NCB uses several distributers in different regions. One of the major distributers is Harrison Stationary and Office Supply LTD. Harrison had distributed NCB’S products for over 50 years and NCB was the largest supplier of Harrison. In January 2003 Harrison was acquired by the president of the company and four senior officers. Most of the acquisition cost was financed by bank loans. Since the acquisition, Harrison had difficulties to pay NCB for the goods and the account receivable reached to unacceptable level. In September 2005 the Harrison account was 156 days old and amounted to $ 4.4 million. In

In other words, the price has to be justified and not seem like an arbitrary number. Slaoui and Witty managed to this by emphasizing on Sirtris’ strengths in terms of their research, but particularly in terms of the actual field Sirtris is engaged in, that could potentially be a transformative science allowing for the development of multiple drugs that have the potential of treating diabetes and other diseases that promise a high turnover when launched. In other words, I would make sure that the members of the board are able to see the potential benefits and above all profits of the respective acquisition.

Although the West Paper Company looks at first to be the best choice, the truth is to be the Thompson Division as it has the lowest cost if we assume that all transfer prices within the company were calculated at costs. The lowest costs that associated within the company would make Birch Paper Company to earn the highest profits and revenues.

David Jacob should analyze the situation with different interests in mind. Since he was looking for an exit from this business that he built from perseverance and hard work, it would be to his benefit to obtain the maximum amount of money possible from the sale. This makes the strategic buyers more favorable. However, His sons who currently work for the company would probably lose their jobs. Finally, taking in consideration of his age of 70, which is an age where he would probably want to just enjoy his life as much as possible, we would say that he should choose to sell to the strategic buyer and take the higher premium and just leave the business completely.

2. If you are Westphal, what issues does the call from Slaoui raise for you? What terms are you most inclined to negotiate?

Yes I would pull the trigger on this deal for the company. The first reason is because this opportunity meets all of their prerequisites that they wanted in a venture, and more. There are only 7 competitors when it comes to the industry and they already have 15% of the market share from a company that was beign run by two dysfunctional partners that were in their 60s. If they take an aggressive market strategy and bring in someone who has extensive knowledge of the industry, they can keep growing their share of

Ans. Lincoln has not been very successful in making successful and profitable acquisitions outside of North America, especially when the company has tried to enter a market strictly through the acquisition route. Inexperience of Lincoln’s executives with trade-unions and lack of knowledge of labor practices and laws in other countries proved major stumbling blocks in the effort to integrate the new acquisitions into Lincoln’s distinctive management culture. Local managers and employees are not convinced that these practices are appropriate for their local environment. As a result the Lincoln has realized that it would rely more on joint ventures and strategic alliances rather than an acquisition. In consonance with its investment philosophy Lincoln would only go forward with an acquisition only if it is immediately accretive, the investment had a minimum internal rate of return of 10%, increasing it to over 18% in 3-4 years also the acquisition should be done at less than 8XEBITDA. Since India is a booming market, Lincoln would not be able to achieve its initial investment goals, any acquisition would require paying up a premium. One of the target companies is already owned by the competitor and other local target had a company of family ownership and dispersed ownership structure.

As we know, Atlantic Corporation was considered as one of the nation’s largest forest products producer, its operations in the linerboard industry have not been strong. Hence, if Atlantic purchased Royal’s Monticello mill, it would increase its profit margin greatly. Additionally, it was expected that 1984 would be a healthy year for this industry, the chances got higher again that Atlantic could position well in the overall industry.

The $55 value is on the lower range of the analyst eztimates, with a best guess estimate of $67.94. Since the value of the stock had been below $45 for 4 months, the offer of 55 dollars represented a 29% premium to investors. Bollenbach knew that management would be resistant of any attempt to be acquired, regardless of price, because of failed previous attempts to negotiate a friendly merger at year end 1996. The 55-dollar benchmark created an expectation for ITT management to achieve that level, or higher and the premium is enough to demonstrate to investors it is a real offer. Their support will be key as they will have a