MHR 405 Lecture Notes - Lecture 4: Cash Flow, Chief Operating Officer, Heinrich Held
27 Oct 2017
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Document Summary
Trivac industries ltd. , a kitchener, ontario-based manufacturer of centralized vacuum systems, was facing severe cash flow problems due to increasing demand for its products and rapid e(cid:454)pa(cid:374)sio(cid:374) of produ(cid:272)tio(cid:374) fa(cid:272)ilities. Although the (cid:272)o(cid:373)pa(cid:374)(cid:455)"s prospe(cid:272)ts (cid:449)ere bright they had overextended their finances and the banks were ready to foreclose their loans, which would put trivac out of business. Steve heinrich, trivac"s founder and majority shareholder, flew to. Germany to meet with the management of rohrtech gmb to discuss the german company"s willingness to become a majority shareholder of trivac industries in exchange for an infusion of much-needed cash. The deal could also be valuable for trivac shareholders as it would give some of trivac products access to new markets. A deal was struck whereby rohrtech would become majority shareholder while heinrich would remain trivac"s president. One of rohrtech"s senior executives would become the chairperson of trivac"s board of directors and rohrtech would appoint two other board (cid:373)e(cid:373)(cid:271)ers.
