Group Project 2: The Cyber Security Company Second Round of Capital Raise

User Generated

zggg

Business Finance

University of Nairobi

Description

Fact Pattern:

Your company sells parts for aircraft.  You have been based in the United States and your manufacturing is in Alabama.  Global demand for your parts has been growing.   Foreign Government contracts are a new large potential area for growth.  Global demand and foreign sales now exceed those in the United States by 75%.  You are a publically traded company on the New York stock exchange.

Your institutional shareholders have been advocating for growth by acquiring a rival company, parts vendor, aircraft technology company, parts distributor, or another acquisition outside of the United States to build parts, lower costs, increase profits, supply your foreign customers at a lower cost, and grow value in the business internationally.  Certain countries also require “offsets” to bid on foreign government contracts for aircraft parts.  Other countries demand a local operation for government contracting.  Your company clearly needs to expand production overseas to meet foreign demand at a minimum.     

You are the group of executives the Board of Directors has tasked with devising a plan for expansion through merger or acquisition. 

Project:

Please create a power point slide deck to be presented to the Board of Directors of your Company.   You will need to summarize your recommendations for M&A and how you would proceed in detail.  You should also outline the advantages and disadvantages of multiple options for different types of corporate acquisitions (existing Government contractor, competitor, parts maker in a related field, etc.) so that the Board can understand your thinking and outcomes.  The Board will decide how to proceed and which company to acquire and where based upon your recommendations and presentation.  Accordingly, it needs to contain all of the information required for such a decision as well as the appropriate level of detail.


Explanation & Answer:
1 presentation
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Explanation & Answer

Hey pal, here it is. PLEASE LET ME KNOW IF YOU NEED ANY EDITS MADE. THANKS

Team Project: The Airplane Part Expansion M&A Plan
Group Exercise 2 Fact Pattern
October 28, 2019

*Note: Source citations are included in the “Speaker Notes” section of each slide.

Background Summary
● Base Business: Sell aircraft parts
● Location: Domestic operation, manufactured in Alabama
● Market conditions: Expand into foreign government contracts, foreign sales exceed
domestic
● Objective: Lower costs, increase profits, lower supply chain expenses realized to
the consumer, international increase in business valuation, build more parts
through the acquisition of a competitor, parts manufacturer, aircraft tech company,
or distributor

● Constraints: “offsets” to bid on foreign contracts, local operation in country of
distribution
● Task: As a board member, expand into the international market via M&A

Project Description and Task Outline



Create PPT for board of Directors



Summarize merger and acquisition recommendations



How we will proceed



Advantages and disadvantages of different corporate acquisitions
(ie. existing government contractor, competitor, parts maker in a
related field, etc.)



Needs all info to make a choice between multiple options

Internal SWOT Analysis for China expansion
Strengths





Reputed customer base
Worldwide market
airplanes co...


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