Does the revenue multiple for the deal seem unrealistic

Assignment Help Management Theories

Reference no: EM133293760

In this case study assignment, you will analyze the Edward Lewis Essence Magazine case study. The case study pushes us to think about synergies in corporate diversification - and flashes forward into digital strategy.

Questions:

Use Porter's Three Tests to Analyze the Essence Time integration.

1. Did the sale of Essence to Time make sense strategically?

2. Industry Attractiveness Test. Explain whether the Five Forces in the magazine industry improve because of the deal. (identifies forces most likely to change). You can focus on one or two forces that you think will be the most impacted by the deal.

3. Cost of Entry Test. Does the revenue multiple for the deal seem unrealistic? (provides revenue multiple, assesses whether the cost can be recouped in a reasonable time period)
a. Will the deal bring additional costs that prevent Time from recouping the purchase price?

4. Better Off Test. Identify possible resource transfer or resource-sharing synergies.(Identifies synergies/barriers for resource transfer or resource sharing).
a. Are there any barriers preventing value creation by combining the two companies?

Reference no: EM133293760

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