The Process of a Take-Over: A Study of Thomas Edicon Inns, Inc.

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Zimmer, Kathryn
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For my research project I chose to look at the process of the take-over of a company. Specifically, I placed my focus upon Thomas Edison Inns, Inc. And its assorted dealings with the Meritage Hospitality Group, Inc. The topic extends from the history, the financial standings, and the players of the Company to the lawsuits, complaints and outside party interference. My objective for such focus is mostly out of curiosity. The St. Clair Inn is located in my home town and used to be where most people I went to high school with found their first jobs. In such a small town, as St. Clair, the take-over of our small Inn was a big, shocking event. Little did I know how big and involved a process it was to become. There were several difficulties in writing this paper. The first was reading such in depth information, especially when a lawyer agreed to meet with me to go through more legal documents only one week before the project was to be due. The second problem proved to be my citations. Most references I have made are based upon entire documents of information and continuous referral to them. As I progressed, these conventional ways of referencing became somewhat unconventional, particularly when it came to the point of having to cite almost every other sentence. Therefore, at the end of this document it became necessary to merely list and credit my sources of information. Throughout the document I have (1) listed the reference number corresponding to the document next to the title of the chapter, (2) referred to specific pieces of information as much as possible either directly, by name, within the sentence to which I refer to the citation, or in parenthesis after the presentation of such material, and (3) cited specific document numbers prior to a referral in the document where possible. This is done in order that one might refer specifically to the Appendix, in which the particular document, in its entirety, is included. I chose to include these documents in the paper for personal references and better understanding. In my conclusion, I found that despite the hostilities of Meritage assumed by those closely involved with TEl, I realized the eventual losses by the Board Members were much less than those that would have occurred by the Company if Meritage had not taken over. As of the Stock Purchase Agreement date the Company was over $4 million in debt and had more than one loan in default. Although it may not have felt to be the best for all involved, it seems that, from an outside viewpoint, it was the best thing that could have happened to the Company, to gain $15 million in the Meritage Agreement.
213 p.
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