Case Name :      ALPES S.A.: A Joint Venture Proposal (A)

Authors :           Henry W. Lane, Dennis Shaughnessy, David T.A. Wesley

Source :             Ivey Publishing

Case ID :            906M27

Discipline :        Finance

Case Length :    16 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

The senior vice-president for corporate development for Charles River Laboratories must prepare a presentation to the company’s board of directors requesting up to a $2 million investment in a Mexican joint venture with a family-owned animal health company. However, the CEO views the proposed joint venture as a potential distraction while his company continues to expand rapidly in the United States. He is also worried about the risks of investing in a country like Mexico and the plan to partner with a small, family-owned company. Moreover, the Mexican partner is unable to invest any cash in the joint venture, which would need to be fully funded by Charles River Laboratories.