Question
Takeover Assignment Heres your chance to shine as a financial analyst. Using your in-depth knowledge of your industry, identify a potential takeover target. Although this
Takeover Assignment
Heres 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 your calculation. 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.
- Calculate or estimate the following for each firm in the industry:
| Airline | Market Capitalization | Price to Earning Ratio (P/E) | Enterprise Value (EV) | Enterprise Value to Sales Ratio (EV/Sales) | Cash Flow |
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- 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.
- What would you expect the cost of the takeover to be? How would you finance it?
Takeover Assignment
Heres 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 your calculation. 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.
- Calculate or estimate the following for each firm in the industry:
| Airline | Market Capitalization | Price to Earning Ratio (P/E) | Enterprise Value (EV) | Enterprise Value to Sales Ratio (EV/Sales) | Cash Flow |
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- 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.
- What would you expect the cost of the takeover to be? How would you finance it?
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