This website uses cookies to ensure you have the best experience. Learn more

Merger Analysis

728 words - 3 pages

2. Briefly describe the differences between a hostile merger and a friendly merger. Is there any reason to think that acquiring companies would, on average, pay a greater premium over target companies’ pre-announcement prices in hostile mergers than in friendly mergers?

Mergers can occur on either a friendly or a hostile basis. A friendly merger occurs when the target company's management agrees to the merger and recommends that shareholders approve the deal. However, the shareholders of the target firm must vote on the merger, but managements support generally assures the vote will be favorable. Once the stockholders approve the merger, the transaction is typically consummated either ...view middle of the document...

Operating Costs 9,600,000 11,520,000 13,824,000 16,588,800
Depreciation 276,000 317,400 365,010 419,762
Fixed Operating Costs 690,000 793,500 912,525 1,049,404
Interest expense 86,250 99,188 114,066 131,175
---------- ---------- ---------- ----------
Earnings before taxes $1,347,750 $1,669,913 $2,064,399 $2,546,859
Taxes 539,100 667,965 825,760 1,018,744
---------- ---------- ---------- ----------
Net income $808,650 $1,001,948 $1,238,640 $1,528,116
Plus depreciation 276,000 317,400 365,010 419,762
---------- ---------- ---------- ----------
Cash flow $1,084,650 $1,319,348 $1,603,650 $1,947,877
Req'd addn to equity 388,125 446,344 513,295 196,763
---------- ---------- ---------- ----------
Available CF $696,525 $873,004 $1,090,354 $1,751,114
Expected terminal value 16,635,138
---------- ---------- ---------- ----------
Free cash flow $696,525 $873,004 $1,090,354 $18,386,252
========== ========== ========== ==========
Maximum total offer, total: $12,333,176
Maximum offer price per share: $4.11

Merger cash flow statements and capital budgeting cash flow analysis are the same. However,...

Other assignments on Merger Analysis

Business And Management Kantian Ethics Essay

1704 words - 7 pages Kantian Ethical Analysis Kantian ethics are perhaps one of the world most loved branch of ethical philosophy. It is to some extent the Eden lost of moral philosophy, for it argues that moral requirements are based on established standards of rationality, reason and dignity embedded in Categorical Imperative and whereas, immorality is somewhat a violation of moral philosophy and is not embedded in Categorical Imperative, which is self

Case Study Employee Benefits For Medical Center

2177 words - 9 pages allow for increased cooperation between employees and management to resolve any lingering problems from the merger. VI. ANALYSIS To be completed after polling. VII. CONCLUSION To be completed after polling. References: Baker, Cinda (2000). “Meet The New Boss.” Modern Healthcare 30 no28 2-3, 14. Hensley, Scott. (1999). “Geisinger Pulls the Plug”. Modern Healthcare 11/22/99, Vol. 29 Issue 47, p2

Organizational Management

1934 words - 8 pages A. Create an analysis document (suggested length of 3–5 pages) in which you do the following: 1. Illustrate how Bill Bailey, chairman of the board of the Utah Opera Organization, might use one theory of motivation to oppose or support the merger. Bill Bailey stated that his opera trustees were concerned about the financial stability of opera in comparison to the symphony. They were concerned that there might be a financial problems being

Multinational Acquisition

1378 words - 6 pages long been on PepsiCo’s wish list. On October 5, 2000, an investment-banking team from Merrill Lynch met with the top executives of PepsiCo to discuss a possible business combination between PepsiCo and Quaker Oats. The goals of the meeting were: • To assess the value of Quaker Oats’ businesses; • To estimate potential synergies associated with a Pepsi-Quaker merger; and • To come up with an effective negotiation strategy. PepsiCo

Adapting To Organizational Culture

3313 words - 14 pages to become obvious that most people are having a difficult time dealing with the change of a new organizational culture. Therefore, the question is how to deal with or manage a new organizational culture after a merger? Therefore, through research and analysis, I plan to evaluate more in depth how other organizations have handle new organizational culture after a merger and to find the best solution for how we as a team can address this problem

Case Study- Southwest

500 words - 2 pages AirTran employees. Analysis: I believe this is a key problem for Southwest, because Southwest built its company on its reputation. If this reputation becomes tarnished because AirTran doesn’t follow the same protocols or have the same positive attitudes that Southwest has, customers might start flying with competing airlines that provide low cost, such as JetBlue. Because Southwest spent so much money acquiring AirTran (1.4 billion dollars

Analysis Of Igate

560 words - 3 pages Analysis Of iGATE Overview: iGATE Corporation (iGATE) is a provider of information technology (IT) and IT enabled services. Its IT services include application development; application management; verification and validation; enterprise application solutions; business intelligence and data warehousing; packaged software implementation; infrastructure management services; cloud computing services; embedded systems development; engineering

M And S

408 words - 2 pages MARKS AND SPENCER Marks & spencer was founded in the year 1884,it was a private limited company. It has grown with a single market.It was an international and multi channel retailer company where this company sell all stylish, high quality ,home proudcts and all luxurious goods across the world. M&S aims to provides quality and best shopping experience to all the customers. SWOT ANALYSIS OF MARKS & SPENCER STRENGTH: M&S was a reputed

Pfier Wyeth M&A Transaction Analysis

8308 words - 34 pages Premier Biopharmaceutical Company 2. Enhanced in-line and pipeline patent-protected portfolio in key “Invest to Win” disease areas, such as Alzheimer’s disease, inflammation, oncology, pain and psychosis 3. Acceleration of Growth in emerging markets 4. Creation new opportunities for established products 5. Creation of a low, more flexible cost base Pfizer-Wyeth Merger Analysis Pfizer History: Pfizer Inc. is one of the leading research

Business Strategy

615 words - 3 pages . Low Quality objectives either do not exist or are not connected to elements of a firms mission, are not quantitative, and are difficult to measure or difficult to track over time. D. External and Internal Analysis 1. External Analysis – a firm identifies the critical threats and opportunities in its competitive environment. i. It also examines how competition in this environment is likely to evolve and what implications that evolution

Capstone Project

1507 words - 7 pages program with customized outcome reporting, ongoing clinical monitoring to assure therapeutic patient outcomes, clinical consultative protocol and nutritional support, pre-discharge patient assessment and pharmacy care plan related to specifics of each treatment modality, coordination, analysis and trending of laboratory orders, therapeutic drug monitoring with pharmacokinetic consultative support, patient education regarding therapy, medication, and

Similar Documents

Vertical Merger Analysis Apple Merge Beats

1534 words - 7 pages value from Beats With music one of the key foundations of Apple’s business, the merger with Beats will further strengthen Apple's brand image and leading position in the music industry. For Beats Electronics, besides the good profit margins from premium headphones, the acquisition will also help to bring synergy to the two businesses as they are both designed for high quality music playbacks and premium users. Apple's interest in Beats Music has a

Pto In A Merger Essay

1051 words - 5 pages PTO Benefits Analysis in a Merger Argosy University When two companies have merged, there is more to the deal than just the financial ramifications. Creating a workplace from now two sets of employees is a difficult task. Each company has their own set of policies, procedures, and benefit packages. Implementing a plan to transition the benefits and policies and communicating the details of the plans is imperative to the merger. Although

Merger And Aqusition Essay

1849 words - 8 pages Practice Phase Test 1 These questions are typical of the type that will appear in the phase test in week commencing 9th January 2012. However they are not necessarily comprehensive i.e. other questions may appear in the test which do not appear here. 1. What are reserves on a statement of financial position (balance sheet)? (a) Money owed by the company to suppliers (b) Profits retained in the

Hp And Compaq Case Essay

1700 words - 7 pages manager which Fiorina wasn’t. After merger HP share has grown more than 100%. HP way can be incorporated in merged company with good management. References http://ezinearticles.com/?Mergers-and-Acquisition---A-Case-Study-and-Analysis-of-HP-Compaq-Merger&id=4472125 http://www.gsb.stanford.edu/news/bmag/sbsm0711/kn-merge.html http://www.cata.ca/files/PDF/Resource_Centres/hightech/reports/studies/quebec-HPQ-merger.pdf http://www.slideshare.net/jayanthsarathi/hp-compaqcase http://www.awpagesociety.com/wp-content/uploads/2011/09/HP-Compaq-case.pdf http://en.wikipedia.org/wiki/Carly_Fiorina