The executives of XYZ Company are looking to acquire a company to expand their product line. Please review the facts below and recommend which transaction, Bulldog or Sunshine, you believe would be the best for the company and provide reasons for your recommendation

Acquisition Bulldog:

• $1,000,000 in Cash:
• Projected Return on Investment = 9%:
• Increase in Customer Base = 2,000
• Asset Acquisition of Customer List Only:
• Customers in state of California only:
• XYZ would need to retain office and 5 employees in California

Acquisition Sunshine:

• $1,500,000 in Cash:
• Projected Return on Investment = 11%:
• Increase in Customer Base = 2,800
• Stock Acquisition of Company will keep as a subsidiary of XYZ Co
• Customers in state of Florida only and includes 2 intangible assets worth approximately $200,000:
• XYZ would not need to retain Sunshines office and employees in Florida as they could integrate operations with the employees of XYZ.