Abstract
The acquisition of a company involves several significant steps that one must assess in order not to fail and lose money in the process. This is the case of David Kuchen, a 30 year-old graduate from a top MBA school, who is looking for a business to acquire or some other related opportunity. He aims to become a senior manager with equity in a small business. He focused his research on light manufacturing, service and distribution companies. These are small companies that don't require too much specialized knowledge. Additionally, he has some specific requirement for his business. He wants to avoid businesses with less than $2 million in sales, own 20 percent of the business over time, receive a $100,000 annual salary, acquire a business with at least $500,000 in EBITDA, and has a good middle management and/or an owner willing to complete a proper transition to a new inexperienced manager. He prefers the head office to be located in or near the Great Toronto Area that offers a few solid growth opportunities. Finally, he discovered Cake Masters, a commercial bakery specializing in high-end dessert items, based in Ontario.
