Reference no: EM137340 , Length: 1200 Words
You are functional managers in a relatively small, but high-growth trucking company. The company was started 10 years ago by a venturesome entrepreneur with a degree in engineering. The owner originally intended to "keep it small and own it all," but found it necessary to make a public stock offering in order to expand into a very competitive, low cost market. Deregulations forced companies to look at cost-cutting by economies of scale, hence the decision to grow much larger. During the last 3 years, the company has been extremely effective in retaining a large amount of cash. Unfortunately, this cash has made it attractive as a takeover target by a "raider." With deregulation well under way, many companies are consolidating into high-volume powerhouses for survival. The SEC has recently informed you that it believes an intricate web of holding companies has managed to acquire 20% of your company's stock. The original company owner, now the company president, does not understand very much about finance, so he has asked you to explain what is going on and what are some of the alternatives available to him. After your first meeting with him, you put together the following topics that need investigation:
1. Critique private equity firms and transactions. Describe the difference among operational, financial, and governance aspects of private equity acquisitions. How do privaty equity transactions differ from mergers and acquisitions. Also, explain leveraged buyouts, junk bonds, and how they affect the financial statements, ultimately, the ability to make acquisitions (including tax advantages).
2. What are the advantages and disadvantages of mergers and acquisitions to the economy? What are some ways the government is involved in them, and should the government be more or less involved?
3. Describe the process by which poison pills, white knights, shark repellants, the Pac-Man defense, dividends, and stockholder persuasion come into the picture. What is greenmail?
4. Describe an example of a hostile takeover that involved raiders, white knights, etc.
5. What is the history of some recent mergers and acquisitions? Have the intended results matched the real results?
6. If the acquiring company needs to pay off a large amount of debt incurred from the acqusition of another company, what are some options for raising cash?
7. How can employee stock ownership and buyouts affect the merger and acquisition process?
|
What is presumably connected to thermostability
: Is habitat temperature reflected in the genomes? What is presumably connected to thermostability.
|
|
Cardiac muscle cells are capable of grade
: What is the maximum theoretical heart rate based on this information? Cardiac muscle cells are capable of grade.
|
|
Describe uses and effects of microbes for man
: List in order the higher taxons used in classification (domain, kingdom, phylum, genus, species) List the 3 domains and how they differ. Describe uses and effects of microbes for man.
|
|
Advance financial accounting questions
: Explain why the holding period return differs from the yield to maturity at the time of the purchase of the bond and identify all the sources of risk associated with holding this bond.
|
|
Strategic planning process v takeover problems
: Essay Question: You are the project manager working on your project’s schedule. You are reviewing leads and lags. What are leads and lags? Please provide an example of each
|
|
Compare aon and gert techniques
: Essay Question: You are the project manager working on your project’s schedule. You are reviewing leads and lags. What are leads and lags? Please provide an example of each
|
|
Create a wbs and a wbs dictionary
: Essay Question: You have been assigned to a new innovative project in your organization. The scope has been completed. You next need to create a WBS and a WBS dictionary. What information should be contained in a WBS dictionary?
|
|
Functional organization verses a pure project environment
: You have been assigned to a new and important project for your company. How would your management style differ if your project was being done in a functional organization verses a pure project environment?
|
|
What is the synapomorphy of mosses and vascular plants
: Horn Sporophytes are horn-shaped. Horn Possess Gemmae. Can undergo sexual reproduction. Mosses what is the synapomorphy of hornworts, mosses and vascular plants? Stomata Pores that allow the uptake of CO2 and release of O2, do not close like other st..
|