a. What are the Key Success Factors in this industry? How are these factors reflected in in Keanes and Metro Information Services financial statements?

b. Could you explain why the price paid by Keane from the acquisition of Metro is calculated as described in Exhibit 4 of the case? What is Keane buying with the acquisition of Metro?

c. Assume that Keane only identifies the assets described in page 5 of the case.

How much of the acquisition price would be allocated to goodwill?

What does goodwill include?

What other intangible assets acquired from Metro would investors like to know about?

Why doesnt Keane allocate part of the acquisition price to those assets?

What recommendations would you give to Keanes CFO with respect to communicating to statement users the different components of goodwill and their valuation?