Reference no: EM133381310

Question: Based on a deal you can select from a list of deals provided in the attached excel file, which has been announced in 2011 by a U.S. listed corporation to acquire another U.S. listed target, the deal selected is Express Scripts Inc & Medco Health Solutions Inc, provide an analysis and discussion on the following 4 topics. The 4 topics are:

a) Background and motives: Provide background information for both merging firms: for the background, please speak about the history of the USA GDP and also please speak about the background of the margining firm

and discuss the main motives of your deal. Evidence from the relevant literature is essential to support your argument(s). [25%] Please use the attached lecture 3 for the main motives for the deal, please make sure to speak about the synergy in terms of the soft and hard synergies, remember to speak about the economies of scale, the economies of scope and the economies of learning,

And please do take into account of all these factors

Part a)

Motives for the MA

1) 1+1 is less than the 2+ episolon

2) Operational or financial synergy

3) Economies of scale, economies of scope, and economies of learning with three different types and draw the diagram for each of the type

4) Economics perspective is to reduce the cost, we have the financial perspective, managerial perspectives: about the manager's team, and how a good management team would benefit the company as the overall, strategic perspective: technological changes, diversiifiesd and focused deals, organizational perspective: market concentralization, transaction cost and also diversification

5) Types of the merger is this a vertical or horizontal, and also speak about if we would have an increase in the market power and about the synergies

6) Strategic motives of the MA, for example the technologies, market valuation, product development and differentiation, cost leadership and market segmentation

7) Organization perspective: decision making process and how this may improve the

organization

b) You are then required to link characteristics of your deal to evidence from prior studies on known factors that influence the likelihood of M&A success. How could these factors affect the structure and payoff of your deal? What payment method would you recommend to finance your deal and why (not necessarily the one actually used)? [25%]

Please use the lecture 6 and attached screenshots to explain these,

Also list out clearly the points with the characteristics of the deal

Factors that influence the likelihood of the MA success. Please also when speaking about the factors that would influence the likelihood of the MA success, please also take into account of these factors

Talk about more than 50% of the majority of the MA would destroy the value

Speak about the managerial/finance perspective, does the merger decision would increase the shareholder wealth? Slide 8

Is the value of the equity following the time of the acquisition's announcement increase enough to compensate them for the risks they face when investing in the firm's assets,

Is the return/compensation they earn greater than the cost of capital?

Rely on the actual shareholder value creation as a measure of acquisition success

Then discuss about How could these factors affect the structure and payoff of your deal?

And then discuss about What payment method would you recommend to finance your deal and why (not necessarily the one actually used)?

Clearly state the Deal Number, the Announcement Date, the Name of the Acquirer, and the Name of the Target of your deal.