S \& H FOOTWEAR Hassein graduated from McGill Univeryity in 2006 with a degree in besiness. He has always had an interest in foctwear, working part-time in high school at his parents" shoe store in Midland, Ontario. After graduation, he got a job with a Iarge Mantreal-based retailer. In 2009 , thussein met Sally at a shoe eapasition in Las Vegas, which he attends every year to see the introducticn of new styles fram around the world. Sally graduated from George Brown College in Toronto in 2007, and has been working in Toronto for a fashion show retaller with nine storen in Foronto, managing the Yorkdale store, the fagship of the chain. Sally and Iussein share a passion for footwear, especially tashionable footwear. After their first meetine Sally and Hassein kept in touch, and often met at various footwear shows or when Sally was an buring trips to Montreal. The last tirne they met was in Milan, the shoe fashion Mecca of the world, and thared their plans for the future. It turned but that they were beth tired of working in a large city and would lke to move to a smaller town in Ontario. However, there were very tew jobs available, and those that came up otlered peor salaries campared to their Montreal and Toronto wages. Although neither saw themselves as entrepreneurs, they had what every entrepreneur needs; indastry experience or what venture capitalats call "domain" experience. As well, both had managed to save some money since eraduation. They also had another entrepreneurial trait. passion, in shis case for everything to do with shoes. They discovered they had both been to the Bata 5 boe Museum in Toronto several tintes, and they both loved ltalian shoes. After many late night discussions, Saly and Hursein decided to team up and either start a shoe store or buy an ewsting one. Sally and Hussein incorpocated a company called H \& 5 . Footwear inc, and lasued themselves 100 shares each, They each put $25 , 000 into the company, and arranged for a tentative bank loan of SS0,000 from a major bank. They began focking at mid-siae towns in Oriario. Their criteria alse included a cesmepolian culture and bie-town amenties. They drew up a list which included tondon, Guelph, kingsten, and Windsar, all university tewns with many ameritiet, relatively robust markets, and growing populations. Since Sally and Hussein are bath avid kayakers and Kingstan had the most appeal far water sperts, they began to look around kingston for a wite for their shoe store or for a shoe store to buy. They found a thoe store for sale on Princess Street in dowentown Xingston. The cwner wished to retire and had purchased a condominiurm in Florida. Neither his son ner his daughter was interested in taling dver the atore, so he decided to well his business as an ongoing concern. He started the store in 1985 and built is up to $500 , 000 in revenue (2011), with one full time and two parttime employees. The premises are rented on a fris-year renewable lease with two and a haif .

1. S & H FOOTWEAR Hassein graduated from McGill Univeryity in 2006 with a degree in
besiness. He has always had an interest in foctwear, working part-time in high school at his
parents" shoe store in Midland, Ontario. After graduation, he got a job with a Iarge Mantreal-
based retailer. In 2009 , thussein met Sally at a shoe eapasition in Las Vegas, which he attends
every year to see the introducticn of new styles fram around the world. Sally graduated from
George Brown College in Toronto in 2007, and has been working in Toronto for a fashion show
retaller with nine storen in Foronto, managing the Yorkdale store, the fagship of the chain. Sally
and Iussein share a passion for footwear, especially tashionable footwear. After their first
meetine Sally and Hassein kept in touch, and often met at various footwear shows or when Sally
was an buring trips to Montreal. The last tirne they met was in Milan, the shoe fashion Mecca of
the world, and thared their plans for the future. It turned but that they were beth tired of working
in a large city and would lke to move to a smaller town in Ontario. However, there were very tew
jobs available, and those that came up otlered peor salaries campared to their Montreal and
Toronto wages. Although neither saw themselves as entrepreneurs, they had what every
entrepreneur needs; indastry experience or what venture capitalats call "domain" experience. As
well, both had managed to save some money since eraduation. They also had another
entrepreneurial trait. passion, in shis case for everything to do with shoes. They discovered they
had both been to the Bata 5 boe Museum in Toronto several tintes, and they both loved ltalian
shoes. After many late night discussions, Saly and Hursein decided to team up and either start a
shoe store or buy an ewsting one. Sally and Hussein incorpocated a company called H & 5 .
Footwear inc, and lasued themselves 100 shares each, They each put $25 , 000 into the company,
and arranged for a tentative bank loan of SS0,000 from a major bank. They began focking at
mid-siae towns in Oriario. Their criteria alse included a cesmepolian culture and bie-town
amenties. They drew up a list which included tondon, Guelph, kingsten, and Windsar, all
university tewns with many ameritiet, relatively robust markets, and growing populations. Since
Sally and Hussein are bath avid kayakers and Kingstan had the most appeal far water sperts, they
began to look around kingston for a wite for their shoe store or for a shoe store to buy. They
found a thoe store for sale on Princess Street in dowentown Xingston. The cwner wished to retire
and had purchased a condominiurm in Florida. Neither his son ner his daughter was interested in
taling dver the atore, so he decided to well his business as an ongoing concern. He started the
store in 1985 and built is up to $500 , 000 in revenue (2011), with one full time and two parttime
employees. The premises are rented on a fris-year renewable lease with two and a haif years to
go on the current lease. The store is 3000 squace feet with a basement for storage, and caters to
men and women with lines such as Ecco, Rockport, Adidas, Clarke, Geox; btush Puppies,
Couga, and Sorel. Hussein and sally were interested and began to carry out their due digence to
evaluate the opportunity and arrive at a value for the buineas and its future prospects. The owner
provided them with a cogy of the lease and intormed them that the building owner would let
them take over the current lease. In addition, they received 2011 income statements and the 2011
balance sheet (fabibit 1 and 2). Sally and Hussein decided to iplit up the due dilgence. Sally
would look at the market, present and future, in Kingston, and Hussein would evaluate the
financial statements and come up with a potential offer for the business. They would both
evaluate the product line, the fatures, and the look of the shop, not only to determine the
insestment necesiary for sprucing up the shop, but also to evaluate the cuerent product offering
and the value provided for the consumer. 1. List the competitors for S + H Footwear in Kingston.
Include years in business, sales, and number of employees. 2. Map the location of competitors.