Question
Based on the Financial Summary and Performance report for 3 quarters, here's your chance to shine as a financial analyst. Using your in-depth knowledge of
Based on the Financial Summary and Performance report for 3 quarters, here's your chance to shine as a financial analyst. Using your in-depth knowledge of your industry, identify a potential takeover target. Although this assignment focuses on the financial aspects of a takeover, you may want to include synergies between your company and the target in making your decision.
You will not be able to take over the company in the simulation, but the exercise will give you practice identifying firms that are candidates for a takeover.
1. Calculate or estimate the following for each firm in the industry
Firm | Market Capitalization | Price to Earnings Ratio (P/E) | Enterprise Value (EV) | Enterprise Value To Sales Ratio (EV/Sales) | Cash Flow |
1 | |||||
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10 |
2. Which competitor would you target for a takeover? Provide a brief rationale for your takeover decision based on the measures you calculated and any other considerations you used.
3. What would you expect the cost of the takeover to be? How would you finance it?
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