Read the Doc file
This is a group assignment on the case (in Materials). Prepare a memo to “Dr. BH” and answer the questions below. Be sure to follow the memo format.
1.Evaluate Allen and his search for a business up to now: What did he do right? What mistakes, if any, has he made in his attempts to purchase companies? Allen experience has pointed out some of the personal traits that help an entrepreneur succeed. What do you feel are those personal traits?
2.What criteria is using to identify acquisition candidates? Do these criteria seem appropriate?
3.What are some of the major issues with the companies Allen attempted to purchase previously – Spectronics, Ace Electronics, Gardenpro, and Hydrapress? What lessons are learned here?
4.Explain the two areas of potential liability with Plas-Tek Industries: unreasonable compensation and accumulated earnings discussed in Exhibit 6. Why they exist and how they might affect Allbcien s bid for Plas-Tek?