Goodwin Wealth Management: An acquisition opportunity

On November 30, 2007, Blake Goodwin decided to hire a consultant to make an objective assessment of his current situation. Over the past few months, several firms had expressed interest in acquiring Goodwin Wealth Management (Goodwin), and Blake knew that he would soon have to decide whether or not to consider any of these offers since he wanted to prevent what could become a potentially hostile bidding situation. Goodwin’s current share price was at a record high of $22.01 per share, with 115 million common shares outstanding (see Exhibit 1). If Blake did decide to consider an acquisition, he would have to act quickly and take advantage of the stock’s high price. Further complicating the decision was the fact that Goodwin represented a legacy that had been built by Blake’s father, George, and Blake knew that he would be subjected to the influence of his father’s opinions throughout the decision-making process. He wanted to act in a way that would be best for the company and that would protect his family’s reputation. Blake’s decision had become time sensitive, and he asked that his consultant provide him with advice as soon as possible.