Continental Carriers

Continental Carriers Inc is a trucking company which focuses in carrying generalcommodities. From the start of its operation in 1952, the company manages within thedistrict of the Pacific Coast and from Chicago to various places in Texas. They attainedfew short term loans resulting from a low debt policy and evading long term debt. The company obtained its profitability and internal growth from the time that Mr. John Evanswas appointed as President of the company. He focused on rigorous marketing andhigh-tech operations. Because of this, the company became known in the truckingindustry as a widely profitable key performer because of its unremitting revenues anddeclining operating costs.Because of the president’s eagerness to preserve and develop the company’sprofitability, he supported the acquisition of Midland Freight, a common carrier servingMichigan and Indiana from Chicago expecting that it would expand CCI’s route systemand appeared well suited for the type of marketing and cost-reduction programs thathad cultivated CCI’s growth. He believed that in order to carry out this goal andobjective, there should be an external financing of $50 million This study provides a comprehensive insight to the company. The hallmark of thereport is the detailed strategic analysis and the right decision that the company shouldput into action in order to expand its revenue and decrease its operating costs throughexternal financing. It also aims to build analysis, solutions and recommendation on howit will attain its goals and objectives.

To determine the advantages and disadvantages of alternative methods of financing Continental Carriers, Inc., acquisition of Midland Freight, Inc. To determine the best financing source that will maximize the wealth of the company’s owners

II.Executive SummaryIII.HighlightsIV.Company HistoryV.Point of View

JOHN EVANSPresident of Continental Carrier, Inc.

VI.Time Context

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1982-1997VII.Statement of the Problem

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Which among the...