Essay on Fin370 Berry's Bug Blasters Team Assignment

Words: 1358
Pages: 6


Berry’s Bug Blasters
FIN 370
January 18, 2010

Berry’s Bug Blasters
Berry’s Bug Blasters is a privately held pest control company that has been in business since at least 2005. They offer customers one time treatment and monthly service plans, as well as chemicals to allow customers to complete some treatment on their own to eradicate a variety of pests, including: roaches, termites, ants, scorpions, rodents, armadillos, snakes, bed bugs, silverfish and bees. In 2005, the company had a negative net income of ($380.65), but has successfully expanded since then, earning $293,475.56 in net income in 2006, then $769,000.80 in 2007, and $493,139.75 in 2008. The company now seeks to further expand
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The firm being acquired may offer a wider range of services that seems appropriate for the expansion, but may ultimately weaken the focus of the original firm. In some instances, assets may be used more efficiently by keeping the two firms separate.
Opportunities of Each Approach When any organization is trying to expand their business, there are a few approaches at had that should be considered for the overall health of the business. For Berry’s Bug Blasters, there is the approach of public offering, merging and purchasing another pest control location. All of these approaches provide opportunities of growth, exposure and success although these approaches may be risky at times. Berry’s Bug Blasters would open more opportunities if they did go public and accepted people investing into their company. This would allow Berry’s Bug Blasters to increase their capital, therefore opening many doors because they would then have more capital to work with. For example, with more capital, Berry’s Bug Blaster can be able to improve their pest control approach with the “latest in technology” chemicals and techniques providing customers with the best possible service. An opportunity that merging can provide to Berry’s Bug Blasters would be that the company would instantly double the power that they have. Merging can also signal customers that the company is