The Empire Company Limited

In the Empire Company Limited Case, James Vaux, the associate director at Scotia Capital is the main decision maker. It is his job in September of 1998 to decide on a price at which The Oshawa Group Limited will sell their company/accept a takeover offer at. The Oshawa Group Limited (Oshawa) is a food retail, wholesale, and distribution firm. The Empire Company wants to expand beyond their Atlantic Canada roots; however, there are a few catches. The Wolfe family owns 100% of the voting shares of the company, and not only know the value of their company and expect to receive at least that much, but also a premium on top of that.
Greg Rudka is the Managing Director at Scotia Capital; he has extensive background in the history of the grocery industry and was the one who noticed this opportunity as well as the person who assigned James Vaux to his assignment of the value of Oshawa. ISSUES There are two main issues at hand. First, Vaux needs to determine a value for both classes of shares that Empire would be willing to pay to the Wolfe family and Oshawa equity holders to acquire a position in the Oshawa Company without starting a bidding war.
The second issue is that Vaux needs to find a way to finance the deal. There are a few minor issues in this case, starting with competition. The grocery industry is very competitive. There are only a few large firms involved in the industry. Of course, there are mom and pop stores all over North America, but they only make enough to live themselves and they are not bringing in the same profits as the major chains, so they are not legitimate threats to Empire. Next, the Oshawa Company’s entire voting shares are owned by the Wolfe family as mentioned above.This will add to the level of difficulty in the purchase or acquisition of Oshawa. Finally, the last issue is that in the grocery industry, it is cheaper to acquire a competitor’s company and chains than it is to open a new store. In other words, horizontal acquisitions were the primary source of growth on the revenue side for the grocery business. People don’t like change and because of this, creating or changing the name of their “local grocery store” may upset or disrupt their previous shopping experiences.
Approximate price: $22
We value our customers and so we ensure that what we do is 100% original..

With us you are guaranteed of quality work done by our qualified experts.Your information and everything that you do with us is kept completely confidential.You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.The Product ordered is guaranteed to be original. Orders are checked by the most advanced anti-plagiarism software in the market to assure that the Product is 100% original. The Company has a zero tolerance policy for plagiarism.The Free Revision policy is a courtesy service that the Company provides to help ensure Customer’s total satisfaction with the completed Order. To receive free revision the Company requires that the Customer provide the request within fourteen (14) days from the first completion date and within a period of thirty (30) days for dissertations.The Company is committed to protect the privacy of the Customer and it will never resell or share any of Customer’s personal information, including credit card data, with any third party. All the online transactions are processed through the secure and reliable online payment systems.By placing an order with us, you agree to the service we provide. We will endear to do all that it takes to deliver a comprehensive paper as per your requirements. We also count on your cooperation to ensure that we deliver on this mandate.