What value would you recommend as a starting point for negotiations? Why? As a “final” offer? Why? Are there any elements of the projected cash flows for PBM or Fabricare that trouble you? Assuming

What value would you recommend as a starting point for

negotiations?  Why? As a “final” offer?  Why? Are there any

elements of the projected cash flows for PBM or Fabricare

that trouble you? Assuming that the Fabricare acquisition

is undertaken and Roy permits Stuart to purchase an

interest in the combined firm, discuss possible financing

alternatives for both transactions.  Do you think that

Stuart will have trouble obtaining bank financing for any

amount in excess of the $110,000 of cash that he currently

has available?  Why or why not?  If you were Stuart, would

you be willing to pay a full 45% of the value of the firm

for 45% of the ownership in the firm?  Why or why not?