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hello, I am working on a merger acquisition report. I choose Walmart as the bidder and Dollarama as the target. Using the 2 0 2
hello, I am working on a merger acquisition report. I choose Walmart as the bidder and Dollarama as the target. Using the annual report for both companies, can your expertise? please help me solve this problems.
Resourcecapability evaluation: Evaluate the acquirer's financial and managerial
capability to complete an acquisition. Identify affordability limits in terms of
the maximum amount the acquirer should pay for an acquisition. Explain how
this figure is determined. marks
Tactics: Indicate the acquirer's preferences for a "friendly" acquisition,
controlling interest, using stock, debt, cash, or some combination, etc.
marks
Search plan: Develop screening criteria for identifying potential target firms and
explain plans for conducting the search, why the target ultimately selected was
chosen, and how you will make initial contact with the target firm. marks
Negotiation strategy: Identify key buyerseller issues. Recommend a deal
structure that addresses the primary needs of all parties involved. Comment on
the major elements of the deal structure including the proposed acquisition
vehicle, post closing organization, form of payment, form of acquisition, and
tax structure. Explain why each major element of the deal structure was
selected. Indicate how you might "close the gap" between the seller's price
expectations and the offer price in the event the initial offer is rejected by the
seller. marks
Assume a purchase price there is no need to do any valuation, just assume a
purchase price Then identify an initial offer price, the composition ie cash,
stock, debt, or some combination of the offer price, and why you believe this
price is appropriate in terms of meeting the primary needs of both target and
acquirer shareholders. The appropriateness of the offer price should reflect your
preliminary thinking about the deal structure. marks
Financing plan: Using the combinedconsolidated financial statements,
determine if the proposed offer price can be financed without endangering the
combined firm's credit worthiness or seriously eroding nearterm profitability
and cash flow. marks
Integration plan: Identify potential integration challenges and possible solutions.
marks
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