Case Name :      Cloverleaf Diary, Inc. – Valuation of a Dairy Farm

Authors :           Janelle Mann, Mossman Charles

Source :             North American Case Research Association (NACRA)

Case ID :            NA0230

Discipline :        Entrepreneurship

Case Length :    20 pages

Solution sample availability : YES

Plagiarism : NO (100% Original work)

John O’Callahan returned from the University of Guelph as a new graduate, engaged to be married. He excitedly told his parents that he and his fiancée would like to take over the family dairy farm after their wedding in the summer. His parents, Michael and Audrey, were happy to hear the news as they had always planned that their family farm would transition to the next generation. At the same time they were somewhat anxious since they did not expect the decision to come so soon, and had not made formal succession plans or discussed this issue with their children. Michael and Audrey wanted to ensure that the selling price and other arrangements would enable them to retire comfortably and that any purchase would consider all three of their children. John was given the task of coming up with a proposal that contained a reasonable valuation of Cloverleaf Dairy as a starting point for a family discussion. Although his parents and sisters seemed positively disposed toward the purchase, in order to proceed, the valuation had to satisfy all parties over the short and long term.