SITUATION
Todd Finkle, a college professor at a major university in the midwestern United States, is passionate about fly-fishing, which he learned as a child from his father. So his interest was piqued when he heard that his favorite fly-fishing rod manufacturer, Thomas and Thomas, was for sale. Founded in 1969 and well known among fly-fishing aficionados, Thomas and Thomas has a solid reputation, good products, and a loyal customer base.
Source:
Dimitra Kessenides, 'Getting Started: Byer Beware,' inc., Vol. 26, No. 13 (December 2004), pp. 48-50.
1. What benefits could Finkle expect if he bought Thomas and Thomas rather than starting his own fly-fishing business?
2. What sources of information about Thomas and Thomas should he use in evaluating the company for possible purchase?
3 What nonquantitative factors should he use in placing a value on Thomas and Thomas?