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An associate director at Scotia Capital Markets must make a recommendation to his client, Empire Company Limited (Empire), regarding a possible bid for rival Oshawa Group Limited (Oshawa). Both companies are in the food retail and wholesale business. Empire was based in Atlantic Canada, with an expanding presence in Ontario and Quebec, while Oshawa competes on a national basis. There were increasing public signals and rumors that suggested that Oshawa''s controlling shareholders (the Wolfe family), might be willing to entertain an offer for the company. To get a clearer picture of the value of the company, the associate director performed a discounted cash flow analysis and comparable analyses to determine the stand-alone and synergy values of the acquisition target. He also had to consider the methods of financing the acquisition and examine the effect of the ownership structure on the market for corporate control.