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obtain loan amounts from financial institutions for petitioner's
prospective purchase of Old Lorvic.
The Acquisition Memorandum identified and detailed specific
factors as crucial to Old Lorvic's success in the dental
professional field and related objectives. Among other things,
the Acquisition Memorandum stated that a great degree of Old
Lorvic's attractiveness as a company for acquisition rested on
increasing yearly revenues, an attractive purchase price, and
significant success in its strategy of marketing to specific
niches in the dental professional field. The Acquisition
Memorandum stated as factors that supported the assumption of
ownership:
(3) Strong Management Team. The Nemanick family has
been managing Lorvic's operations for nearly 35 years.
Senior management averages more that [sic] 22 years
with the Company. While the Company utilizes a dealer
network for the majority of sales, senior management
has built strong direct relationships with Lorvic's
direct customers.
* * * * * * *
(6) Long Established Customer Base. Lorvic has been
supplying products to the professional dentistry market
for over thirty years, and the Company's top ten
customers have been ordering from Lorvic for an average
of seventeen years. Management feels the loyalty of
its customer base is Lorvic's most significant
competitive advantage in a market dominated by large
corporate organizations.
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Last modified: May 25, 2011