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You are Vice President of Acquisitions for Greensill Capital, LLC.Your chief executive officer asks you to evaluate a possible acquisition of a company known as

You are Vice President of Acquisitions for Greensill Capital, LLC.Your chief executive officer asks you to evaluate a possible acquisition of a company known as Mayor Oscar's Meat Sellers, Inc.("MOMS").In performing due diligence on MOMS you learn the following:

MOMS' financial projections for the upcoming year are heavily based on a two hundred percent increase in the sale of pork sausage.MOMS has a contract with Healthy Hogs, L.P. under which MOMS agrees to purchase, and Healthy Hogs agrees to sell, "MOMS' annual requirements for pork products."Over the first five years of the contract term, MOMS has purchased an annual average of 25,000 pounds of pork products from Healthy Hogs. MOMS' manufacturing plan for the upcoming year calls for purchasing at least 100,000 pounds of pork products from Healthy Hogs.When you ask MOMS' CFO about the projected increase, she tells you "Don't worry about it; that's why we negotiated that contract with Healthy Hogs. They have to sell us whatever amount we need."

brief memo to your CEO addressing the issues set forth above.

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