Question

finchco case for corporate finance,

It was late February 2010, and Harry Finch who was president and chief executive officer (CEO) of Finch Distributing Company (Finchco), was thinking about selling his business. At 65 years of age but in excellent health, he wanted to pursue his dream of buying a yacht and sailing around the world. His interest in selling the company had begun in earnest when in late 2007 Finchco had received a $35.4 million offer1 to purchase the company from one of its U.S. suppliers. Unfortunately, at the onset of the financial crisis, the offer was revoked. Since that time, Finchco had experienced a financial reversal related to the downturn of the economy but Finch felt that the company was turning around and had a potential large contract on the horizon. He wondered whether the time was right to offer his firm for sale.

Answer 1

As per inoformation of the question, it is clear that due to some economical problem in the country, offer of $35.4 million could not be completed. This is also given that Harry Finch wanted to sell company since late 2007 but due to financial crisis contract of selling was revoked.

It is also given in the question that now condition of the financial crisis has been improved so economic conditions of the country & economy has been improved. So now existing companies have increased demands for their products & services thus selling a company at this point of time is not good because Harry Finch is still healthy & energetic to run business apart from this he want to operate business at high level too. So when financial conditions of the country has improved then Harry Finch can continue with his existing company.

Finally we can say that present time is not right time for selling company because financial & economic conditions of the market & country is good to operate a company.