Case | HBS Case Collection | March 1998

Bumper Acquisition (A1), A: Confidential Information for Thermo-Impact, Inc.

by James K. Sebenius and David T. Kotchen

Abstract

Located in Mundelein, IL, Thermo-Impact, Inc. is a rapidly growing, private firm that manufactures automotive bumpers. In 1995, a number of large automotive supply companies and a private equity investment firm offer to buy Thermo-Impact. The cases in this series focus on the offer made by the private equity investment firm, New York-based Medallion Capital, and subsequent negotiations between a Medallion principal and Thermo-Impact's owners. This case provides background information on Thermo-Impact and Medallion, as well as a description of Thermo-Impact's emergence as an attractive acquisition target. Concludes with the terms of a buyout offer sent by Medallion to the owners of Thermo-Impact. The offer serves as a starting point for students to negotiate the possible transaction, with some students representing Thermo-Impact and others representing Medallion. Contains confidential information for Thermo-Impact negotiators. Can be taught over a span of two or three class periods.

Keywords: Private Equity; Valuation; Negotiation Participants; Decision Making; Negotiation Process; Entrepreneurship; Negotiation Offer; Acquisition; Manufacturing Industry; Auto Industry; Illinois;

Citation:

Sebenius, James K., and David T. Kotchen. "Bumper Acquisition (A1), A: Confidential Information for Thermo-Impact, Inc." Harvard Business School Case 898-198, March 1998.