A Discussion of:
The John M. Case Company
Prepared for:
Dr. Rakes
Prepared by:
Jeffrey R. Kennard
February 26, 2002
March 22, 1985
John M. Case Company
2463 Williams St.
Dover, Delaware 46975
Dear Mr. John Case,
Several weeks ago you informed the senior management that you would like to sell your company and spend more time in leisure activities. I have an offer to purchase the John Case Company. The terms that you set for the sale of the company were $20 million, with $16 million of the total in cash. I believe that the price of $20 million is a fair price.
I have secured financing for the purchase of the company as can be seen in the enclosed letters. The following is a breakdown of where the money will come from:
Equity from executives of the John Case Company $500,000
Bank Term Loan $6,000,000
Cash from the company $4,000,000
Subordinated Loan from Venture Capitalist $5,500,000
Total Cash $16,000,000
Sellers Note $6,000,000
Total $22,000,000
I hope you find the offer acceptable, as the executive board and I have great anticipation in making the John Case Company an even greater company.
Sincerely,
Anthony W. Johnson
March 19, 1985
First Bank of Delaware
1111 First Street
Dover, Delaware 46975
John M. Case Company
2463 Williams St.
Dover, Delaware 46975
Dear Mr. Johnson,
We first of all would wish to thank you for c ...