TO: All Management
RE: Meetings with prospective companies
Immediately following the management meeting to discuss the prospective two companies in which Target would work with I began to compile the necessary information to be presented. We must first take a look at each company separately. Find out what we will gain from union and what they will also obtain from the transaction as well. John will be presenting to company "A" and Rich will be conducting the presentation to company "B"
For company "A" who would like to invest in Target and from his investment he is asking to have partnership through the sale of new stock. Company "B" is willing to provide a loan that we would have to pay back. Are we willing to take on a debt? That is something that will be addressed along with the necessary loan arrangements. In order for each company to feel comfortable about this investment they are requesting more information about Target's financial stability.
This is where John and Rich will come into play.
Company "A" wants to have partnership through the sale of new stock we must follow this path: For company "A" to invest in enough stock to pay off he would need controlling share. According to Wall Street Target stores are taking a huge leap and helping Dayton Hudson (who is the parent company for Target) through a weak retail year. With Target's soaring stock every stock holder will benefit greatly. If company "A" were to invest in Target not only would Target benefit from the stock sale and company "A" would be rewarded with stock that will continue climbing.
In order to convince company "A" to invest with Target and purchase stock John needs to focus on the highlighted item below, which is Target's Gross Operating...