Critically analyze financial management problems

Reference no: EM133114024 , Length: word count:3000

FC30 Corporate Finance - Majan University College

Learning outcome 1: Explain various finance theories and concepts, and their interrelationship and influence on the financial management of a company.

Learning outcome 2: Critically analyze financial management problems, and apply the relevant tools and techniques for financial decision making /corporate decisions

Corporates worldwide have been trying to build new competencies and capabilities to remain competitive and to grow profitably. Mergers and Acquisitions are a significant form of business strategy for achieving larger size, improving revenues and profitability, faster growth in market share and for becoming more competitive through economies of scale.

In the context of the above write a report addressing the following:

1. Introduction - A brief discussion on mergers and acquisitions theory, types and problems.

2. Discussion on Motives for mergers and acquisitions and its impact on the financial perform

3. Review of the existing literature - the impact of mergers and acquisition on the financial performance of the organization and the success or failures of mergers/acquisitions.

4. Empirical evidence - Choose a merger or acquisition that has taken place national or international.

5. Collect the data for a period of two years before the merger/acquisition and two years after the merger/acquisition taking the merger/acquisition year as base year

6. Compute the relevant financial performance indicators for profitability, liquidity, leverage, and growth.

7. Analyze the pre- and post-merger performance ratios compare and test for differences using appropriate statistical tools as t-test.

8. Explore the impact of merger/acquisition on financial performance of the organization.

9. Evaluate the reasons for the success or failure of the organization justify/support your views with appropriate examples and evidence from literature.

10. An appropriate conclusion based on the findings of your report.

Note: Use the following suggested measurements to calculate the financial performance for pre and post merger.

Profitability
Net Profit Ratio
Return on Equity
Liquidity
Current Ratio
Quick Ratio
Leverage
Debt-to-Equity Ratio
Interest coverage ratio
Growth
Earnings per share
P/E Ratio

Attachment:- Corporate Finance.rar

Reference no: EM133114024

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