1. What do you think Jeff did well in looking for opportunities? How would you improve on this process?

2. What steps would you take to examine the Smitty’s opportunity and see if it might be worth entering into negotiations to buy the business?

3. How would you go about determining if the $100,000 asking price is realistic?

4. If you were in Jeff’s shoes, which alternative would you choose? Why? What criteria or factors did you consider in making your choice?

It was October 1998, and Jeff Malott, a young, aspiring entrepreneur, had just toured the rustic factory and retail store of Smitty’s Li’l Haulers, a Shedden, Ontario–based manufacturer of children’s toy wagons. Jeff was very impressed with what he had seen. Smitty’s was for sale, and Jeff wondered if this was the right opportunity for him.