25735: Mergers & Acquisitions- Assessment Answer

MAS497

Report Writing Assignment:

Question:

1.Overview of acquirers’ business and discussion of acquirer’s business plan/strategy and its merger
strategy

2.The analysis should be based mainly on lecture 2 and include the following elements:
a).Industry analysis: Porter’s five forces, industry trends and developments, and other industry analysis tools applied to the acquirer
 Given the page limit, only the most important/relevant factors should be highlighted
 Identify opportunities offered and threats in the industry environment
b).Company analysis: Analysis of the company’s business performance, strengths and weaknesses –this will involve both qualitative and quantitative analysis
c).Combine the above two in a SWOT matrix
d).Devise/analyse company strategy
e).Devise/analyse company’s merger strategy: what kind of companies should the acquirer acquire based on your analysis?

3.Deal Rationale

4.Justify or criticise the deal concept and explain the logic (or lack thereof) of the deal
A.Using tools and concepts from lecture 1, describe the motivations and the rationale for the deal
a.What are the sources of synergy? Be specific and detailed
b. What are the other potential sources of value creation in this deal?
c.What other objectives/reasons are behind the deal?
d.Are there bad reasons for the deal?
e.Was the deal reasonably priced and correctly timed?

B. Try to link the deal rationale with the industry/company analyses above. How does the current deal fit with your analysis (of acquirer’s business/merger strategy) of the kind of targets the acquirer should pursue — i.e., is this deal a good ‘strategic fit’ for the acquirer?

5. Does the deal make sense in a long-term or “strategic” sense?