Essays on Acquirer

Introduction

The fast food industry is a multi-billion venture for companies operating in the United States and those that have a foothold in the global market. One of the successful American publicly traded franchises is McDonald's with food stores both in the United States and beyond. McDonald's has a net worth of about $110B, annual revenues of $25.36 B and a profit margin of $5.7B by close of the financial year in 2016. Besides, McDonald's has a strong history of acquisition spanning from the 90’s where it acquired Chipotle. Followed by Donato Pizza, KeyCorp, Essex Capital Markets Inc., Wallach ...

Generally, Tesco has grown as a brand over the years, and has altered its delivery methods in order to complete with other similar brands. Also, Tesco’s long-term corporate strategy is focused on ensuring the company an appeal to multiple market segments, and so diversification of the brand must be considered as it relates to the strategy (Tesco, 2014). This strategy has made it the largest retailer in the world, of its kind. In spite of this success, however, the brand presents a significant weakness, in that it relies, almost exclusively on the UK market to fuel its success ( ...

An Analysis of Merger & Acquisition Strategy

Introduction There has been a major fall in the oil prices in past two years from 2014-2016. The decline in oil prices has led to a major impact on the energy sector making it difficult for energy producer companies to survive. However, despite the falling oil prices and damp prospects, there has been a major announcement of merger and acquisition that touched the $300 billion dollar mark in 2016, while the deal announcements in 2015 were in the tune of $3.2 trillion across the globe. Most of the surge in the energy sector is attributed to some of the ...

Rights of the shareholders

While the shareholders are the most important stakeholders of the company, however, very few control the day to day running of the company’s business activities. Therefore, in order to safeguard their interest, the company range multiple rights of the shareholders and provide them the eventual power to influence the company’s decisions. Below we have discussed the rights of the shareholders: a) Right to attend the general meeting and cast their vote All the shareholders of the company have the right to receive notice of the general meeting, including, Annual General Meeting(AGM) and Extraordinary General Meetings(EGM). ...

Abstract

Phillips Morrison International is one of the most iconic brand in the tobacco and cigarette industry. Rated as the most innovative company in the industry,over the years, Phillips Morrison has diverted their focus on emerging markets that account for 80% of the global demand,while the westernized consumers are being introduced to next generation products. However, the focus of the company remains in Asia Pacific region as it looks to target growing population of India, China and other Asia Pacific regions. Even on the financial terms,the company is performing better than its core rival, British American Tobacco ...

Literature Review: Principle of Equivalence

List of References: 12 Literature Review Principle of Equivalence Background Usually, whenever a property is purchased or acquired from a willing or non-willing seller, it is expected that a fair compensation is given to those whose interests are deprived. However, it may be difficult to determine what a fair compensation constitutes. In some cases claimants may receive more or less compensation compared to the value of their property. In other instances, the monetary sum provided may be a huge sum, but it may not cover non-quantifiable losses such as psychological and social implications. As experience has shown, there are ...

**Business 4465**

Be sure to put your name and student number at the top of the email attachment. Your document must be less than 10 typed pages. Please read the questions carefully. Write all you answers in a word document, label all questions carefully. The best answers are those that answer the questions well and concisely using material within the scope of the course and not irrelevant material from other sources or from the internet. Answers that are beyond the scope of the course will receive no marks. Answers that are not written in the own words of a ...

Issues Between Store Norske Spitsberger Kulkompani Corporation

1. Store Norske is considering using Coal India Limited to assist them in their international business operations. What issues will Store Norske have to address with respect to any business transactions between Store Norske and Coal Inida Limited. Discuss. Store Norske’s manner of partnering with Coal India to assist them in their international business operations is called international joint venture. This is the most common way to go into international business to a) reduce the risk in venturing into a new operation, and b) takes the favorable opportunity of using the skills and assets of the new business ...

[First Name Last Name]

PayPal Organizational Overview & Brief History PayPal Holdings Inc. is an American based online payment system, which is headquartered in San Jose – California and currently operating globally. Primary operations of PayPal are associated with online money transactions using electronic options, surpassing traditional methods such as money orders and checks that were less reliable and timely. PayPal is one of the most largest and renowned online money transferring corporations in the world. PayPal primarily functions as an acquirer i.e. performing all the relevant processing of the payment in support of online vendors and businesses. Since it operates ...

WACC Calculation: Arrow Electronics Limited

Calculation of WACC WACC: Weight of short-term debt* Cost of ST debt(1-tax rate)+ Weight of long-term debt* Cost of LT debt(1-tax rate)+ Weight of equity* Cost of equity = 0.0019* 0.0274+ 0.2987* 0.0378+ 0.6994* 0.0707 = 6.085%

Calculative Notes:

i) Cost of debt: -Cost of Long-term debt

The cost of long-term bonds issued by the company has been calculated on the weighted average basis:

-Cost of Short term debt The information relating to the short-term debt of the company was available in Note-6 of the financial statement where we found that during the year the amount of short-term debt owed by the company amounts to $13.454 million. The company has also disclosed that short-term borrowings were used exclusively ...

A Merger and Acquisition (M&A) usually occurs when one firm or company acquires all assets and liabilities belonging to another company. There are majorly two types of mergers and acquisitions depending on what is involved (Cooke, 1988). The two forms of mergers and acquisitions are:

- Merger as a result of absorption: this happens through a combination of two or more companies into an existing company. Usually, the acquired companies lose their identity while the acquirer retains its name and identity. A classic example is the acquisition of AMC Entertainment by the Chinese Dalian Wanda Group Corporation Limited. In this ...

With the analysis at hand on the way to transfer the data carefully and effectively from the IT of the acquired company to the acquired one. Measures such as revising the information held in their records and deduce their status. In regards the newly acquired soft candy company, four pyramids of ideas had to be developed. They fall under several meetings that were to be held by various departments within the acquiring manufacturer. The specified departments lie in the field of IT, Manufacturing, Distribution and lastly marketing. The requirements in completing the boxes were as specified. On box relating ...

Introduction

Debit and credit cards are used by customers for post paid and pre-paid transactions respectively. They promote cashless society since individuals do not carry their money with them while going to shop. The holder of the cards can use them to either debit or credit their bank accounts at any transaction terminal where the holder will have to produce the card for reading confirmation through the assistance of the system of computer before the actual transaction can be completed. The debit card for instance is a payment method which can be accepted at the terminal of transaction using PIN or ...

Abstract

Business environment is increasingly changing pushing firms to adapt strategies that seek to enhance not only their competiveness but also sustainability. One such strategy is the M&A that is becoming a crucial tool for growing in both local and international markets. In that respect, this literature review sought to identify the reasons for M&A, their advantages as well as disadvantages. To achieve the objective, the review used past studies and researches on the subject seeking various authors’ views on the reasons, benefits and disadvantages. In the review, it has been identified that M&As have various benefits for all participating firms. ...

Report

Corporate takeover In a corporate takeover, two methods are commonly used. There is the purchase method and secondly the pooling of interest method. The first is applied where the acquirer can be identified while the latter is used where the acquirer cannot be identified. In a corporate takeover, several aspects of valuation are necessary. They are as follows – share valuation, valuation of business, valuation of fixed assets and shareholder agreement (Solomon, 2011). In the event of a corporate takeover, the financial statements are adjusted so as to remove items which are not reflective of the ongoing business on a continuous basis. ...

Introduction

In an organization, the corporate level of management carries out the growth strategies of the organization. Growth strategies are employed to seek growth, sales, profit and market share or any other objectives the organization may have set. The growth strategies are expected to result to an increase in the organization value. Some of the growth strategies which may be implemented are vertical integration, horizontal integration, and diversification, take over, mergers and acquisition, strategic alliance and joint ventures. The strategies discussed leads to an increase in the market share of a firm. The strategies are also adopted to help the firm ...

Capital markets are markets in which institutions and individuals buy and sell financial securities. Capital markets channel funds from wealth savers institutions that need funds for long term investments. Capital markets comprise of both the equity and debt markets. Investors participate in the capital market in order to maximize their wealth by buying, holding and selling financial securities in order to take advantage of price fluctuations in the capital market. There are various theories that have been developed to explain the performance of investors’ portfolio. One of the dominant theories is the efficient market hypothesis. This paper discusses the ...

Mergers and Acquisitions (M & As) have become popular among companies, in the last two decades. The word merger describes a process whereby two or more parties come together resulting in either the creation of a totally new entity or continuance of one of the former entities (Jayesh, 2012). Conversely, acquisition refers to acquiring power over the management or assets of the company without integration of companies (Jayesh, 2012). This question seeks to find out reasons that make board of directors go for mergers and acquisitions (M&A), despite the fact that most companies that use this approach fail. The question further ...

In today’s competitive market, companies are seeking opportunities to provide new products and services in order to remain relevant and still make substantial profit margins. There are different alternatives available to a company through which it can provide these services and goods to the market.

The Eastman Chemical Company

The Eastman Chemical Company is a global company that specializes in the production of additives, speciality chemicals and fibres found in products that are used every day by everyone. In 2012, the company desired to extend its territorial reach and offer a more diversified and sustainable product portfolio. There were several options available to achieve both ...

Special Topics

Question 1 Change in corporate control refers to transfer of the decision making authority of a company from one group of persons to another group. This power entitles individuals to make decisions concerning operations and strategic planning of the company, allocation of capital, acquisitions, marketing decisions and production decisions. Publicly traded companies are prone to corporate control changes when large investors, especially institutional investors and other companies, strive to seize control from existing shareholders and managers. Change of corporate control can be effected through; tender offers, negotiated offers and proxy fights . Negotiated offers are the process by which ...