Profile: eMachines is one of the leading independent personal computer distributors throughout retail channels in the United States. The Company went public at $8.00 per share during March 2000 and never subsequently traded above that amount. The Company also attempted to find a buyer during the summer 2001 but did not yield a result.

Goal/Requirement: Develop a financial and strategic plan for a founding shareholder and director to purchase all of the outstanding common stock through a going private transaction.

Strategy:
• John Hui, a founder and director of the company, retained Averil Capital to structure, finance and present an offer during October 2001.
• EM Holdings, the acquisition vehicle, presented a fully financed, fully defined offer to the Board of the company within 30 days.
• The Board of Directors unanimously accepted EM Holdings’ offer; the purchase price was $152 million, including the acquisition of more than $175 million in cash.
• The deal was completed through a two-step process, including a tender offer followed by a short-form statutory merger.
• The deal was successfully closed on December 31, 2001, just 90 days from the date Averil was retained.

Results: Averil Capital assisted EM Holdings in selling the Company to Gateway, Inc. during March 2004 for cash and stock consisting of $250 million. The annual return on investment was 498%.