Charles Wong, the owner of Original Woods Inc. (OWI), would like to become a strategic partner in SIL. SIL currently purchases 75% of its wood materials from OWI, so this partnership would streamline procurement of a major inventory item. The proposal: OWI would obtain 35% ownership in the company for a $2 million investment. OWI would sell wood materials to SIL at a discount of 10% from current costs paid by SIL. Charles would be involved in the company as an executive manager and have a seat on the board of directors. SIL has been purchasing wood from OWI for the past two years. Charles deals primarily with George and has yet to meet Kelly.

Would like you to analyze the quantitative and qualitative aspects of the current financing proposals?

Answer rating: 100% (QA)

Lets analyze the quantitative and qualitative aspects of the current financing proposals for Original Woods Inc OWI to become a strategic partner in S... View the full answer