Topic > Too Hot To Hold - 1508

The case study “Too Hot to Hold” (Katz & Green, 2014, p. 182), describes a business purchasing opportunity available to Gwendolyn Bonnefille, a single mother in difficulty. The business for sale is a small, apparently home-based business that produces hot sauce. Sly, the current owner, makes, bottles, and labels Caterwauling Coyote Hot Sauce from his kitchen, then distributes the finished product to gift and specialty stores in Texas (Katz & Green, 2014). In her attempt to buy the company, Mrs. Bonnefille discovers that there are some inconsistencies between the company's financial statements and Sly's personal tax returns. The case study provides Sly's explanation for the discrepancies and provides some information regarding the terms of the company's sale. The case study then goes on to ask three questions regarding Sly's explanation of the financial discrepancies, the accuracy of the sale price, and other information that Ms. Bonnefille should consider before making a decision to purchase the Caterwauling Coyote from its current owner ( Katz & Verde, 2014). While I may not answer the questions in order, this essay will address all of these concerns and evaluate whether or not this purchase may or may not be a good option for Mrs. Bonnefille. According to Katz & Green, 2014, one of the first hurdles in purchasing a business means finding one that meets the buyer's "experience, education, and skills" (p. 165). Furthermore, Katz & Green (2014) point out that when purchasing a company it should be in an industry where the buyer has some experience. The case study is not specific in this regard. Ms. Bonnefille's current job is in accounts receivable (Katz & Green, 2014), which, in my opinion, is very different from doing... middle of paper... calculators/mortgage/loan calculators. aspx?loanAmount=190000&years=15&terms=180&interestRate=10&loanStartDate=06%2F14%2F2014&monthlyPayments=2041.75&monthlyAdditionalAmount=0&yearlyAdditionalAmount=0&yearlyPaymentMonth=+June+&oneTimeAdditionalPayment=0&oneTimeAdditionalPay ment InMY=+jul+2014&pDate=jun+14%2C+2029&show=false#Biery, M (2014, February 2). Private Company Growth Slowed in 2013 - Forbes. Retrieved June 14, 2014, from http://www.forbes.com/sites/sageworks/2014/02/02/private-company-growth-slowed-in-2013/Katz, J. A., & Green, R. P. (2014) . Small entrepreneurial businesses (4th ed.). New York, NY: McGraw-Hill/Irwin.Ochse, G. (2013, August 15). Things to think about when buying a business. Finweek, 51. Retrieved from http://web.b.ebscohost.com.ezproxy.denverlibrary.org/ehost/pdfviewer/pdfviewer?sid=c4507653-e8f4-4f58-8882-d5d970a15628%40sessionmgr110&vid=2&hid=103