Product details

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Compact case
Supplement
-
Reference no. 9B11M036
Published by: Ivey Publishing
Originally published in: 2011
Version: 2011-07-27

Abstract

This is part of a case series. 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?
Location:
Industry:
Size:
Small
Other setting(s):
2010

About

Abstract

This is part of a case series. 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?

Settings

Location:
Industry:
Size:
Small
Other setting(s):
2010

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