FIN660 Milestone 3 SNHU The Kroger Company Merger Analysis

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In Milestone One and Two you chose your company (bidder) and a target company. You have examined and discussed the background of each. You will now take the prior analysis performed and discuss how the proposed merger or acquisition will impact your company. Using the knowledge you have gained on valuation, you can finish your target company analysis by determining its value. Then, you will discuss how the target company will bring firm value to your organization, as well as any negative impacts the merger or acquisition could cause. You will also determine the best way to finance the deal. You will consider how your deal structure will affect the capital structure of your organization, and what impact the deal will have on additional risks associated with mergers and acquisitions that may affect firm value.

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FIN 660 Milestone Three Guidelines and Rubric Overview: In Milestone One and Two you chose your company (bidder) and a target company. You have examined and discussed the background of each. You will now take the prior analysis performed and discuss how the proposed merger or acquisition will impact your company. Using the knowledge you have gained on valuation, you can finish your target company analysis by determining its value. Then, you will discuss how the target company will bring firm value to your organization, as well as any negative impacts the merger or acquisition could cause. You will also determine the best way to finance the deal. You will consider how your deal structure will affect the capital structure of your organization, and what impact the deal will have on additional risks associated with mergers and acquisitions that may affect firm value. Prompt: Explain the potential impacts of merging with or acquiring the target company. Consider capital structure and cost of capital when formulating a deal structure. Specifically, the following critical elements must be addressed: II. III. Target Company Analysis: F. Assess the last five years of the target company’s financial history for determining its firm value. Financial Impacts: A. Explain how the target company will bring firm value to your organization by providing specific examples of economies of scale, cost reductions, or increase in revenues. B. Explain the negative financial impacts that mergers and acquisitions could have on your organization. Support you explanation using examples related to your organization’s objectives. C. Determine if your organization will finance a deal through the use of cash, stock, or debt. Explain how your selection is most appropriate for mitigating the financial impacts mentioned previously. D. Based on the above deal structure, discuss additional risks to your organization and explain how this deal structure will reduce their impact on firm value. Consider political, social, taxation, HR, or cultural risks. Rubric Guidelines for Submission: Your paper must be submitted as a 3- to 4-page Microsoft Word document (not including the cover page and reference page) with double spacing, 12-point Times New Roman font, and one-inch margins. You should use current APA style guidelines for your citations and references. Critical Elements Target Company Analysis: Financial History Exemplary (100%) Meets “Proficient” criteria and assessment demonstrates a complex grasp into how to determine firm value using financial history Proficient (90%) Assesses the last five years of the target company’s financial history for determining its firm value Financial Impacts: Bring Firm Value Meets “Proficient” criteria and examples provided demonstrate a complex grasp into how economies of scale, cost reductions, and increase in revenues bring firm value to an organization Explains how the target company will bring firm value to the organization by providing specific examples of economies of scale, cost reductions, or increase in revenues Financial Impacts: Negative Financial Impacts Meets “Proficient” criteria and explanation demonstrates a complex grasp on financial impacts that mergers and acquisitions have on an organization Explains the negative financial impacts that mergers and acquisitions could have on the organization, and explanation is supported using examples related to the provided objectives Needs Improvement (70%) Assesses the last five years of the target company’s financial history for determining its firm value, but assessment is unclear, contains inaccuracies, or lacks five years of financial history Explains how the target company will bring firm value to the organization by providing specific examples of economies of scale, cost reductions, or increase in revenues, but explanation is cursory or contains inaccuracies, or examples are inappropriate, or there is a lack of examples of economies of scale, cost reductions, or increase in revenues Explains the negative financial impacts that mergers and acquisitions could have on the organization, and explanation is supported using examples related to the provided objectives, but explanation is cursory, contains inaccuracies, or examples are inappropriate Not Evident (0%) Does not assess the last five years of the target company’s financial history for determining its firm value Value 10 Does not explain how the target company will bring firm value to the organization 21.5 Does not explain the negative financial impacts that mergers and acquisitions could have on the organization 21.5 Financial Impacts: Finance a Deal Meets “Proficient” criteria and explanation demonstrates a complex grasp into how cash, stock, and debt are used for mitigating the financial impacts Determines if the organization will finance a deal through the use of cash, stock, or debt, and explains how this selection is most appropriate for mitigating the financial impacts Financial Impacts: Additional Risks to Your Organization Meets “Proficient” criteria and explanation demonstrates a complex grasp into how the deal structure will reduce additional risk impacts on firm value Submission has no errors related to citations, grammar, spelling, syntax, or organization Discusses additional risks to the organization and explains how the deal structure will reduce their impact on firm value Articulation of Response Submission has minor errors related to citations, grammar, spelling, syntax, or organization Determines if the organization will finance a deal through the use of cash, stock, or debt, and explains how this selection is most appropriate for mitigating the financial impacts, but explanation is cursory or contains inaccuracies Discusses additional risks to the organization and explains how the deal structure will reduce their impact on firm value, but explanation is cursory or contains inaccuracies Submission has major errors related to citations, grammar, spelling, syntax, or organization that negatively impact readability and articulation of main ideas Does not determine if the organization will finance a deal through the use of cash, stock, or debt 21.5 Does not discuss additional risks to the organization 21.5 Submission has critical errors related to citations, grammar, spelling, syntax, or organization that prevent understanding of ideas Total 4 100% ...
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MrMark
School: UIUC

Hello, I will have to hold on the question for n...

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Anonymous
Excellent job

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