Case4

gray harbor had enjoyed above-average growth in shipments (see queer 8), which was unchanging with the general rise in the consumption of liqueurs shown in Exhibit 5, but surprising in light of market surveys that everywhere half of southern relaxations consumers viewed it as a whiskey. Thus, compared to the slow growth of whiskey as a class, southern sympathisers performance was arresting. It was attributed in part to flutter and roll singer Janis Joplin, who preferred Southern Comfort. Strengthened channel of foreign distribution also accounted for growth in exportation sales. Among marketing professionals, it was considered a very strong brand. Southern Comfort had never been sold at a discount by its manufacturer. Its performance notwithstanding, Brown believed that the brand had not been aggressively marketed.

through and through an intermediary, the Fowler br another(prenominal)s had approached Brown-Forman to solicit their interest in buying Southern Comfort Corporation and Caligrapo, Inc, for $94.6 million. Subsequently, Brown-Forman learned that, in recent years, two other major distillers had entertained the possible learnedness of Southern Comfort and had rejected it at that price. At the time of approaching Brown-Forman, the Fowlers were discussing acquisition with no other potential buyers.



They seemed sincerely interested in selling to Brown-Forman, primarily because of a perceived fit of Southern Comfort with the Brown-Forman product line. Also, Brown-Forman resembled Southern Comfort in coarse outline: a family-run business with a Southern heritage and a record of superior performance.

The Fowlers indicated a willingness to accept money for the two companies. Through an intermediary, they also suggested two other features of the acquisition. First, Southern Comfort Corporation owned some real quality unrelated to the operations of the company. The Fowlers offered to repurchase that property at record value, about $5.9 million, after the acquisition. Second, they proposed that the...If you want to get a entire essay, order it on our website: Orderessay



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