During the early part of 2008, a series of group meetings had taken place between Tom Eliot and Bill Flinder and their respective advisers. It seemed clear to both parties that both FVC and RSE could profit from the merger. By early May, a broad outline of the merger seemed to be developing. Flinder Valves was to become a subsidiary of RSE International the deal would be structured in such a way as to preserve FVC's identity. The two sides had explored some of the governance and compensation issues in the merger. Flinder would be retained along with his top management team and all other employees. No layoffs were contemplated. This reflected RSE's intention to invest in and grow the FVC operation. FVC's solid management team was one of the factors that had attracted RSE in the first place, and Eliot wanted to keep the same management