b.Background of CPP (the acquirer)-Bought by Wathen in 1963, CPP expanded from 18 employees with $163,000 revenue to 20,000 employees with $250 million in 24 years. -In 1987, CPP has 125 offices in 38 states and Canada-The board of directors has three members.c.Background of Pinkerton’s (the target)-Founded by Allan Pinkerton in 1850, the company was then headed by four generations of Pinkertons until the family’s region ended in 1967. -In 1982, Pinkerton’s was acquired by American Brands for $162 million.-In 1987, Pinkerton’s was among the largest security guard firms in the United States, with sales over $400 million, 150 offices in the United States, Canada, and the United Kingdom, and a particular strength in the eastern United States. -In Oct 1987, American Brands announced it had decided to sell Pinkerton’s.4.Key facts should be considereda.Strategic Synergy-Company scale: After the acquisition, CPP and Pinkerton’s will be the largest firm in the security guard industry. This is also the ambition of the CEO Wathen. -Brand name: While the industry was highly price-competitive, the services of both Pinkerton’s and CPP could be successfully marketed under the Pinkerton’s name at a premium price.