Your written assignment is as follows:Part 1
- Locate a publicly traded company in an industry that interests you. Find a publicly traded competitor which is suitable for a merger or acquisition with this firm.
- Write a ten page double spaced paper (not including exhibits) on why the company should be acquired and what purchase price should be paid. Your analysis should include the “real” reasons behind the merger and not the standard answers. Major topics should include: A brief background of the industry which the company operates, a background on the company and the management team, the acquisition purchase price (you may want to include a base purchase price and the maximum purchase price your firm would be willing to pay), what makes this merger a good fit, a brief strategy on how the company will operate after the merger, and how the deal would be financed.
- You have an enormous amount of material to use for this project. Annual Reports and 10Ks can be obtained by contacting the company’s Investor Services Department.
Part 2
Prepare a PowerPoint presentation as though it was before the Board of Directors of the company and include it with your paper. Your presentation should include the following:
- A brief history on the company to be valued
- How that company fits into the industry
- The valuation of the target company
- A conclusion or recommendation to acquire or walk away from the deal
This is a big project, so start to think about a company that you’d be interested in during the first week. Remember to keep it simple. If you can’t explain the product to a 12 year old kid, stay away from it. Also keep in mind that financial companies and airlines are notoriously complicated.
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