Perform critical analysis of comparative issues

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Reference no: EM132461451 , Length: word count:1600

Mergers and Acquisitions

Part 1:Individual analysis and presentation

LO 1. Critically analyse the relative importance of different types of drivers of mergers and acquisitions in a global context.

LO 2. Critically assess the success or otherwise of a range of mergers and acquisitions transactions.

LO 3. Analyse the mergers and acquisition strategies of global organisations and critically appraise suggestions for improvement in the application of strategies.

LO 4. Syntheses and discuss the key Parts in successful mergers and acquisitions.

LO 5. Perform critical analysis of comparative issues in mergers and acquisitions.

Assessment Overview

The assessment for this module consists of two Parts:

Part 1 Individual analysis and presentation (1,600 words)

Part 1

This assessment is designed to assess students' abilities as outlined in Learning Outcomes 2 and 3:

LO 2. Critically assess the success or otherwise of a range of mergers and acquisitions transactions.

LO 3. Analyse the mergers and acquisition strategies of global organisations and critically appraise suggestions for improvement in the application of strategies.

Task Hostile take-overs: KKR buys RJR Nabisco

Most acquisitions and mergers occur by mutual agreement -- both parties agree that all of the stakeholder's interests are served best by the transaction. In those instances, both sides have a chance to evaluate the costs and benefits, assets and liabilities, and proceed with full knowledge of the risks and returns.

However, in a hostile takeover, management and board usually do not share any information that is not already publicly available. As a result, the acquiring firm takes an additional risk. In addition, the loss of key managers and leadership within the company may disrupt its operations and threaten its viability, and the reputation of the acquirer may be damaged if the hostility spills over to customers and other stakeholders.

One of the most prominent hostile takeovers of all time was the leveraged buyout (LBO) of RJR Nabisco by investment bank KKR (KKR) in the late 1980s. This takeover was well-documented in "Barbarians at the Gate: The Fall of RJR Nabisco."

You are tasked with writing a report about this take-over and analyse the execution of the acquisition and the integration strategy.

Address the following issues in your report (1,600 words using a business report format (Introduction, main body of text, conclusion):

Issue 1) Critically analyse the execution of the hostile take-over and suggest what other strategy could have been employed in this situation, if any. (LO2)

issue 2) Analyse the success or failure of the integration of the targetinto the acquirer's operations. Critically appraise whether the hostility of the take-over negatively influenced the process and how the negative perception of the deal influenced the acquirer's operations in the target markets (LO3)

Attachment:- Mergers and Acquisitions.rar

Reference no: EM132461451

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