Bumper Acquisition (A2), A: Confidential Information for Medallion Capital, Inc.

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 Medallion counterparts. Teaching Purpose: Designed to provide students with a realistic experience in negotiating the sale of a rapidly growing, entrepreneurial firm. Allows students to negotiate the transaction in small groups outside of class. Can be taught over a span of two or three class periods. Allows students to formulate responses to unexpected developments that arise in the course of the Thermo-Impact/Medallion negotiation, as well as to convey a sense of the often lengthy and complex nature of negotiating buyouts.