shared via CourseHero com This study resource was This study source was downloaded by 100000819858194 from CourseHero com on 08 18 2021 05 54 55 GMT 05 00 https www coursehero com file 67437920 Agenda 11 Market Expansion Team Response FINAL version 1docx Agenda Item 11 Half Year 4MARKET EXPANSION TEMPLATE FOR COMPLETION The company believes there are three options available to acquire Really Good 1 Buy the entire issued share capital of Really Good from Marco 2 Buy the business and assets of Really Good as a going concern 3 Really Good hives down its assets into a newly formed subsidiarycompany newco and then sells the shares in newco to yourcompany Set out the option you believe is preferable and explain why you believe it is best In doing so you should evaluate the weaknesses of the options you declined to pursue Your submission should be no more than 500 words Enter your Team Name Option and Justification below Team NameStocks ChairsOption 1 2 or 3 3Justification Purchasing the company through shares keeps the business as in its current form and maintains their existing liabilities which would ultimately make us responsible for the lawsuits and damages which may have been caused by their fault goods As the owner Marco is trying to get rid of the company whose performance has been poor we don t think there would be any harm done by admitting that we don t want to carry the business s baggage with us We think all parties concerned would see it as a questionable business decision if we were to purchase shares including our own shareholders who would likely react badly Buying the business and assets as a going concern would keep the business running as it is now This wouldhave obvious reputational damage to us since we would be affiliated with a company involved in numerous lawsuits and with poor consumer image As the brief states that we are looking for acquisitions to further our 428b5936b6309d1412a0deb6bf922d40d5f285e1 docxPage 1 of 2 2019 Chris Elgood Associates Ltd shared via CourseHero com This study resource was This study source was downloaded by 100000819858194 from CourseHero com on 08 18 2021 05 54 55 GMT 05 00 https www coursehero com file 67437920 Agenda 11 Market Expansion Team Response FINAL version 1docx Powered by TCPDF www tcpdf org strategic aims this does not meet this We do not need to acquire and run another subsidiary who operates in our own sector this would only make sense if it was a vertical expansion e g buying a supplier or distributor Since the option states that the business would remain agoing concern this is not suitable If the option were instead just to buy the assets which would help to expand our own company then this would be much morepreferable e g purchasing several new factories and more machinery to integrate into our own operations As it is not we don t think this option would be worthwhile The third option seems the best by far If the company hives down its assets into a new subsidiary and sells the shares to us then we are disassociated from their issues and it is harder for the press to discoverthe link to us protecting us from bad publicity Not only this but we will not be liable to pay for damages and the lawsuits that followed from their faulty goods There will be no company history and we will be able to take on only the profitable parts of the business that we want to keep subject to negotiation with Marco This alleviates the issues highlighted in the point above in that we can take the assets of the business that align with our strategic aims and do not need to carry the deadweight of any poor performing areas of the business Once we own the new company we could dissolve it into our company meaning that we trade under a single banner causing minimal confusion and disruption to our customers 428b5936b6309d1412a0deb6bf922d40d5f285e1 docxPage 2 of 2 2019 Chris Elgood Associates Ltd