Gaspier Jeans
Maverick
Acquisition of livious apparel, Inc. by
Gaspier jeans, Inc
Acquisition of livious apparel
Merger—Proposal Discussion
Over the last few days, Gaspier Jeans, Inc. has been in talks for a merger with Livious Apparel, Inc. In order to discuss the details of the deal, Joan Ryan, Chief Executive Officer, Gaspier Jeans met Owen Trint, Vice President,
Livious Apparel, Inc. on a pleasant Monday morning in Boston, Massachusetts.
Joan: Good morning Owen! Good to see you after so long.
Owen: Good morning! Yeah, it’s been quite a while.
Joan: Yes.. and I think it’s great that we are meeting today because we are really looking forward to start working with your company. And as such, we should decide on the terms of the transaction as soon as possible. Owen: I completely agree with you. Let’s bell the cat!
Joan: You told me that you were going to decide on your final offer price based on your board meeting last week. So what do you have for me?
Owen: Yes, we did have a board meeting last week and we have decided on a consideration of $550 million for a 100 percent stake in our company. However, you will receive dividend payments of $130 million immediately after the deal.
Joan: Looks like the quote is above the range we had in mind.
Owen: Well, the company has been doing really well for the past three years and is poised to perform even better in the next few years. I think you need to consider the fact that this company is going to be worth $800 million in five years, which speaks volumes about the potential of the company and the industry.
Joan: Ok, let me to talk to my valuation experts and get back to you with our offer price in a couple of days.
Does that work?
Owen: That should work. Let’s connect once you have an offer price. Have a good day!
Campus Maverick—Round 1
1
Acquisition of livious apparel, Inc.
Merger Details
Action Items for Deloitte
Later that day, Joan sent out a mail to his valuation experts (Deloitte) describing his conversation with Owen
Acquisition of livious apparel, Inc. by
Gaspier jeans, Inc
Acquisition of livious apparel
Merger—Proposal Discussion
Over the last few days, Gaspier Jeans, Inc. has been in talks for a merger with Livious Apparel, Inc. In order to discuss the details of the deal, Joan Ryan, Chief Executive Officer, Gaspier Jeans met Owen Trint, Vice President,
Livious Apparel, Inc. on a pleasant Monday morning in Boston, Massachusetts.
Joan: Good morning Owen! Good to see you after so long.
Owen: Good morning! Yeah, it’s been quite a while.
Joan: Yes.. and I think it’s great that we are meeting today because we are really looking forward to start working with your company. And as such, we should decide on the terms of the transaction as soon as possible. Owen: I completely agree with you. Let’s bell the cat!
Joan: You told me that you were going to decide on your final offer price based on your board meeting last week. So what do you have for me?
Owen: Yes, we did have a board meeting last week and we have decided on a consideration of $550 million for a 100 percent stake in our company. However, you will receive dividend payments of $130 million immediately after the deal.
Joan: Looks like the quote is above the range we had in mind.
Owen: Well, the company has been doing really well for the past three years and is poised to perform even better in the next few years. I think you need to consider the fact that this company is going to be worth $800 million in five years, which speaks volumes about the potential of the company and the industry.
Joan: Ok, let me to talk to my valuation experts and get back to you with our offer price in a couple of days.
Does that work?
Owen: That should work. Let’s connect once you have an offer price. Have a good day!
Campus Maverick—Round 1
1
Acquisition of livious apparel, Inc.
Merger Details
Action Items for Deloitte
Later that day, Joan sent out a mail to his valuation experts (Deloitte) describing his conversation with Owen