Confidential My Goodness Health Foods - Case Study Assessment Answer

Internal Code: 1AIAHD

Confidential My Goodness Health Foods - Case Study Assessment Answer

Assignment Task: 1. Important Notice 1.1 This Information Memorandum (the 'Memorandum") has been prepared by Rowan Consulting Services Pty Ltd (ACN 050 048 541) ("RCS").  The Memorandum is being distributed for use by prospective buyers of the business known as My Goodness Health Foods (the "Business") solely for the purpose of determining whether to acquire the Business from RCS. 1.2 This Memorandum has been prepared by RCS from information known to it about the Business but does not purport to contain all information that a prospective buyer (the buyer) of the Business may require.  RCS or its directors, employees, or advisers shall be taken to be under any obligation to correct, update, or revise the Memorandum or any written or oral communications transmitted to a recipient Of the Memorandum in the course of their evaluation of the Business.   1.3 The forecasts included in the Memorandum are not representations as to future matters.  The forecasts are based on assumptions and are subject to uncertainties and contingencies, many of which are outside the control of RCS and its directors and employees. 1.4 No representation is made that any forecast will be achieved.  Actual future events may vary from forecasts. Recipients should make their own inquiries and investigations regarding the assumptions, uncertainties, and contingencies which may affect the Business' future operations and value the impact that different future outcomes may have on the Business. 1.5 None of RCS, its directors, employees, or advisers make any representation or warranty as the accuracy or completeness of the Memorandum or shall have any liability (whether arising from negligence or otherwise) for any representations (express or implied) or information contained in, or for any omissions from, the Memorandum or any written or oral communications transmitted to recipients in the course of the evaluation of the Business. 1.6 This document does not constitute an offer to acquire the Business. 1.7 If you have any questions about acquiring the Business, you should consult a suitably qualified adviser. 2. Confidential Information By accepting this Information Memorandum, the recipient acknowledges and agrees that:

1. they, their employees, representatives, or advisors will not use any information provided in relation to MY GOODNESS HEALTH FOODS in any manner whatsoever, in whole or in part, other than in connection with his evaluation of MY GOODNESS HEALTH FOODS for the purpose of considering whether to acquire this business from its present owner;
2. they will not reproduce any information provided, in whole or in part, and will not distribute all or any part of the information provided to any person other than a limited number of their employees, representatives, or advisors who have a clear need to know such information for the purpose set forth in (a) and who have agreed to maintain the confidential nature of such information;

if the recipient does not acquire MY GOODNESS HEALTH FOODS the recipient will return all information to Rowan Consulting Services Pty Ltd. 3. The Business 3.1 Background My Goodness Wholefoods was established in October of 1992 in premises adjacent to the Business' present location.  The Business became available for sale in late 1993 due to the ill health of the owner and was acquired by Rowan Consulting Services. 3.2 Business Location MY GOODNESS HEALTH FOODS is located in the premier suburb of Hobart Sandy Bay.  Sandy Bay is approximately two kilometers from Hobart CBD and is situated on the western shores of the Derwent River.  The store is located in the main Sandy Bay shopping precinct in a shopping village dominated by the local Purity supermarket (now Woolworths). 3.3 Customer Profile MY GOODNESS attracts a diverse variety of customers.  However, they can be grouped into a number of broad categories.

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