Provide a detailed description of the firms

Assignment Help Financial Management

Reference no: EM131155432

Project:
• use Bloomberg, Valueline, Morningstar, Mergent or any on-line source for data.

M&A project for Energy Transfer Partners & Sunoco:

1. Both firms are/were publicly held (listed on a stock exchange)

Research both firms:
1. Provide a detailed description of the firms
2. Describe their primary activities and markets
3. Provide a three year ratio analysis with the financial statement - balance sheets, income statement, cash flow-three years before the M&A and three years after the M&A using at least 16 key ratios found in any textbook or in the following link:

16 Financial Ratios for Analyzing a Company's Strengths and Weaknesses by Joe Lan, CFA

https://www.aaii.com/journal/article/16-financial-ratios-for-analyzing-a-companys-strengths-and-weaknesses.touch

4. Calculate the DuPont Relationship for each firm for each year: ROE = NPM * TAT * EM

Identify Synergies

5. Summarize at least five articles describing the benefits and drawbacks of the M&A.

Provide links or actual articles, Discuss and describe at least 3 benefits and 3 criticisms of the M&A, Discuss by clearly describing the synergies expected and how to measure them

Evaluate Price - all from the articles -

6. Use two of the approaches in the textbook - Merger, Acquisitions, and other restructuring activities- seventh edition by Donald M. Depamphilis to evaluate the value of the target

7- Discuss and compare your evaluation to the actual price paid

8- Discuss whether the Acquirer paid full price, over-price, under-price

9- Discuss and describe the post-merger performance of the firm using the same ratios

10- Discuss and describe the post-merger performance of the combined firm's stock price

11- Discuss and describe the measures used to evaluate achievement of synergies

Business Finance On-line - use for your analysis of the two firms provides functions and calculations for:

•Short-term Solvency, Debt Management, Asset Management, Profitability, Market Values
https://www.zenwealth.com/businessfinanceonline/RA/RatioAnalysis.html

•Demonstrating Value - provides insights into social responsible and sustainable firms
https://www.demonstratingvalue.org/resources/financial-ratio-analysis

•My Accounting Course - provides extensive listing, explanation and calculation of ratios
https://www.myaccountingcourse.com/financial-ratios/

•Accounting Coach - Good Introduction
https://www.accountingcoach.com/financial-ratios/explanation

Important notice :
All the project analysis make it in word file no less than 10 pages and provide all the financial statement and article or any related stuff in separate file as a documents to support what is written in the project analysis.

Reference no: EM131155432

Questions Cloud

The interim financial statements of a public company : What are the differences between the review reports for a private company under SSARS and for the interim financial statements of a public company?

Parenthetical documentation for quotes : Your exam is open-book; you may use any references Use parenthetical documentation for quotes, paraphrases, and summaries. In an essay of approximately 450 words, and responding to the specific questions in the scenario below, coach a hypothetical ..

Creates the greatest good for the greatest number of people : The following term refers to an act that creates the greatest good for the greatest number of people:

Applicable accounting standards are not being followed? : What should auditors do if during a review of financial statements they discover that applicable accounting standards are not being followed?

Provide a detailed description of the firms : Provide a detailed description of the firms- Describe their primary activities and markets - Provide a three year ratio analysis with the financial statement - balance sheets, income statement, cash flow.

Aspect of the exchange process : In the early stages of development, consumer behavior was known as buyer behavior. What important aspect of the exchange process does this change in name reflect?

Give the level of assurance required of reviews of financial : What procedures should the auditor use to obtain the information necessary to give the level of assurance required of reviews of financial statements?

Factors forces for medical clinic expansions : Looking for a list of possible results for Porters 5 Factors Forces for Medical Clinic Expansions. The scenario: A large insurance company invests and uses their brand to expand into urgent care clinics throughout the community.

The financial statements are misleading : What steps should auditors take if during a compilation engagement they become aware that the financial statements are misleading?

User Account

All Pages