Reference no: EM133710845

Assignment

Part A: Paper

Below are the term paper requirements- it should be 15 pages not including appendix cover page or abstract or table of content.

I. M&A Proposal: Propose a hypothetical merger or acquisition between two publicly traded companies. Analyze their 10K forms for data on their financial health, business models, market presence, and strategic objectives. Discuss why these companies are suitable for each other. Justify your proposal by comparing their strengths and weaknesses, and how they could complement each other. Also, discuss the strategic benefits of the merger or acquisition, such as entry into new markets, acquisition of unique capabilities, or increased bargaining power with suppliers.

II. Synergies Identification: Identify potential synergies that could result from the proposed M&A. These could be cost synergies, such as reducing overheads or achieving economies of scale, or revenue synergies, such as cross-selling or market expansion. Provide a detailed analysis of how these synergies could increase efficiency, profitability, or market share. Use financial data to estimate the value of these synergies.

III. Management Structure: Discuss the potential management structure of the combined entity. Identify who might take key positions based on their experience and skills. Propose an organizational structure designed to maximize the benefits of the merger, taking into account the need to integrate different corporate cultures and manage change effectively.

IV. Due Diligence: Outline a comprehensive due diligence process. This should include a review of financials (assets, liabilities, revenues, profits, cash flow), legal issues (contracts, litigations, compliance with regulations), operations (operational efficiency, supply chain, logistics), technology (technological capabilities, intellectual property, IT systems), and HR (company culture, employee satisfaction, talent pool).

V. Valuation: Provide a detailed valuation of the target company using multiple valuation methods. For example, you could use Discounted Cash Flow (DCF) to estimate the company's future cash flows, trading comparables to compare the company's valuation multiples with similar public companies, and transaction comparables to look at multiples paid in recent similar transactions. Explain each method and discuss its strengths and weaknesses.

VI. Deal Structure and Financing: Propose a structure for the deal (stock purchase, asset purchase, or merger) and explain your choice. Discuss the financing method (cash, stock, debt), giving reasons for your selection. Analyze the implications of the deal structure and financing method on both companies' financial positions and risk profiles.

VII. Post-Merger Integration: Discuss potential challenges in integrating the two companies post-merger. These could include cultural integration, systems integration, and HR issues. Propose strategies to overcome these challenges, such as change management programs, IT system harmonization, or retention strategies for key employees.

VIII. Conclusion and Recommendation: Summarize your findings, providing an overall assessment of the feasibility and potential success of the proposed M&A. Discuss whether the benefits outweigh the risks and challenges. Make a recommendation on whether to proceed with the M&A, giving clear reasons for your decision.

IX. References: Cite all sources accurately according to the chosen citation style. This includes not only the 10K forms but also any articles, reports, or other resources you used to inform your analysis. Make sure to follow ethical practices in citation to avoid plagiarism.

In all sections, ensure that your arguments are supported by data and sound reasoning. Your paper should demonstrate a deep understanding of the M&A process and its complexities. Remember to write in a clear, concise, and formal academic style.

Part B: PowerPoint Presentation

Prepare a PowerPoint presentation which should be 15 minutes in length, 20 minutes maximum. Below is the format that should be followed.

I. Slide I: Title Slide

1) Title of the presentation
2) Your name

II. Slide II: Introduction

1) Brief introduction to the topic
2) Overview of the two selected companies

III. Slide III: M&A Proposal

1) Hypothetical merger or acquisition proposal
2) Justification based on 10K forms and other sources

IV. Slide IV: Synergies Identification

1) Potential cost and revenue synergies
2) Explanation of how these synergies would benefit the combined entity

V. Slide V: Management Structure

1) Proposed management structure post-merger/acquisition
2) Rationale behind the proposed structure

VI. Slide VI: Due Diligence

1) Outline of the due diligence process
2) Key areas of focus: financials, legal, operations, technology, HR

VII. Slide VII: Valuation

1) Value of the target company using DCF, comparables, etc.
2) Explanation of valuation methods

VIII. Slide VIII: Deal Structure and Financing

1) Proposed structure of the deal (stock purchase, asset purchase, or merger)
2) Financing method (cash, stock, debt)

IX. Slide IX: Post-Merger Integration

1) Potential challenges in integration
2) Strategies to overcome these challenges

X. Slide X: Impact Analysis

1) Potential impact of the M&A on stakeholders - shareholders, employees, customers, competitors, industry

Slide XI: Conclusion

1) Summary of findings
2) Overall assessment of feasibility and potential success of the proposed M&A