Business Acquisitions Paper for Accounting.

Anonymous

Question Description

Use the Internet or Strayer library to research two (2) publically traded U.S. companies, and download their financial statements. Assume that you are the CEO of one of the selected companies. You are responsible for gaining control over the other company. You have three (3) choices, either of which you believe that the Board of Directors will support.

  • Choice 1: Your company acquires 35% of the voting stock of the target company.
  • Choice 2: Your company acquires 51% of the voting stock of the target company.
  • Choice 3: Your company acquires 100% of the voting stock of the target company.

Write a four to five (4-5) page paper in which you:

  1. Provide a brief background introduction on both the company that you are working for and the company that you are responsible for gaining control over.
  2. Specify the overall manner in which the acquisition fits into your company’ strategic direction. Next, identify at least three (3) possible synergies that could occur as a result of the proposed acquisition.
  3. Select two (2) out of the three (3) choices provided in the above scenario, and analyze the key accounting requirements for each of the two (2) choices that you selected. Next, suggest one (1) strategy in which you would prepare the financial statements for your company after the acquisition under each of the two (2) choices.
  4. Select the choice that you consider to be the most advantageous to your company. Explain to the Board of Directors at least three (3) reasons why your selected choice is the most advantageous to the company.
  5. Assume two (2) years after the acquisition, your Board of Directors wants to offer the shares back to the public in hopes of making a large profit. Assume that in each of the two (2) years your company and the target company have had exactly the same reported net income as they did in the year of acquisition. Determine the type of value, (e.g., cost of fair value) that you would use to report the subsidiary’s net asset in the subsidiary’s financial statements, which the company will distribute to the public with the public offering. Provide support for your rationale.
  6. Use at least three (3) quality academic resources in this assignment. Note: Wikipedia and other Websites do not qualify as academic resources.

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Grading for this assignment will be based on answer quality, logic / organization of the paper, and language and writing skills, using the following rubric. Points: 270 Assignment 1: Business Acquisitions Meets Minimum Expectations Criteria Unacceptable Below 60% F 60-69% D 70-79% C 80-89% B 90-100% A 1. Provide a brief background introduction on both the company that you are working for and the company that you are responsible for gaining control over. Did not submit or incompletely provided a brief background introduction on both the company that you are working for and the company that you are responsible for gaining control over. Insufficiently provided a brief background introduction on both the company that you are working for and the company that you are responsible for gaining control over. Did not submit or incompletely specified the overall manner in which the acquisition fits into your company’ strategic direction. Did not submit or incompletely identified at least three (3) possible synergies that could occur as a result of the proposed acquisition. Did not submit or incompletely selected two (2) out of the three (3) choices provided in the above scenario, did not submit or incompletely analyzed the key accounting requirements for each of the two (2) choices that you selected. Did not submit or incompletely suggested one (1) strategy in which you would prepare the financial statements for your company after the acquisition under each of the two (2) choices. Insufficiently specified the overall manner in which the acquisition fits into your company’ strategic direction. Insufficiently identified at least three (3) possible synergies that could occur as a result of the proposed acquisition. Partially provided a brief background introduction on both the company that you are working for and the company that you are responsible for gaining control over. Partially specified the overall manner in which the acquisition fits into your company’ strategic direction. Partially identified at least three (3) possible synergies that could occur as a result of the proposed acquisition. Satisfactorily provided a brief background introduction on both the company that you are working for and the company that you are responsible for gaining control over. Satisfactorily specified the overall manner in which the acquisition fits into your company’ strategic direction. Satisfactorily identified at least three (3) possible synergies that could occur as a result of the proposed acquisition. Thoroughly provided a brief background introduction on both the company that you are working for and the company that you are responsible for gaining control over. Thoroughly specified the overall manner in which the acquisition fits into your company’ strategic direction. Thoroughly identified at least three (3) possible synergies that could occur as a result of the proposed acquisition. Partially selected two (2) out of the three (3) choices provided in the above scenario, partially analyzed the key accounting requirements for each of the two (2) choices that you selected. Partially suggested one (1) strategy in which you would prepare the financial statements for your company after the acquisition under each of Satisfactorily selected two (2) out of the three (3) choices provided in the above scenario, satisfactorily analyzed the key accounting requirements for each of the two (2) choices that you selected. Satisfactorily suggested one (1) strategy in which you would prepare the financial statements for your company after the acquisition under each of Thoroughly selected two (2) out of the three (3) choices provided in the above scenario, thoroughly analyzed the key accounting requirements for each of the two (2) choices that you selected. Thoroughly suggested one (1) strategy in which you would prepare the financial statements for your company after the acquisition under each of Weight: 10% 2. Specify the overall manner in which the acquisition fits into your company’ strategic direction. Next, identify at least three (3) possible synergies that could occur as a result of the proposed acquisition. Weight: 15% 3. Select two (2) out of the three (3) choices provided in the above scenario, and analyze the key accounting requirements for each of the two (2) choices that you selected. Next, suggest one (1) strategy in which you would prepare the financial statements for your company after the acquisition under each of the two (2) choices. Weight: 20% Insufficiently selected two (2) out of the three (3) choices provided in the above scenario, insufficiently analyzed the key accounting requirements for each of the two (2) choices that you selected. Insufficiently suggested one (1) strategy in which you would prepare the financial statements for your company after the acquisition under each of the two (2) choices. Fair Proficient Exemplary 4. Select the choice that you consider to be the most advantageous to your company. Explain to the Board of Directors at least three (3) reasons why your selected choice is the most advantageous to the company. Weight: 15% 5. Assume two (2) years after the acquisition, your Board of Directors wants to offer the shares back to the public in hopes of making a large profit. Assume that in each of the two (2) years your company and the target company have had exactly the same reported net income as they did in the year of acquisition. Determine the type of value, (e.g., cost of fair value) that you would use to report the subsidiary’s net asset in the subsidiary’s financial statements, which the company will distribute to the public with the public offering. Provide support for your rationale. Weight: 15% 6. 3 references Did not submit or incompletely selected the choice that you consider to be the most advantageous to your company. Did not submit or incompletely explained to the Board of Directors at least three (3) reasons why your selected choice is the most advantageous to the company. Did not submit or incompletely determined the type of value, (e.g., cost of fair value) that you would use to report the subsidiary’s net asset in the subsidiary’s financial statements, which the company will distribute to the public with the public offering. Did not submit or incompletely provided support for your rationale. Insufficiently selected the choice that you consider to be the most advantageous to your company. Insufficiently explained to the Board of Directors at least three (3) reasons why your selected choice is the most advantageous to the company. No references provided Does not meet the required number of references; all references poor quality choices. Serious and persistent errors in grammar, spelling, punctuation, or formatting. Lack of in-text citations and / or lack of Numerous errors in grammar, spelling, and punctuation. Weight: 5% 7. Writing Mechanics, Grammar, and Formatting Weight: 5% 8. Appropriate use of SWS in-text citations and Insufficiently determined the type of value, (e.g., cost of fair value) that you would use to report the subsidiary’s net asset in the subsidiary’s financial statements, which the company will distribute to the public with the public offering. Insufficiently provided support for your rationale. In-text citations and references are given, but the two (2) choices. Partially selected the choice that you consider to be the most advantageous to your company. Partially explained to the Board of Directors at least three (3) reasons why your selected choice is the most advantageous to the company. Partially determined the type of value, (e.g., cost of fair value) that you would use to report the subsidiary’s net asset in the subsidiary’s financial statements, which the company will distribute to the public with the public offering. Partially provided support for your rationale. the two (2) choices. Satisfactorily selected the choice that you consider to be the most advantageous to your company. Satisfactorily explained to the Board of Directors at least three (3) reasons why your selected choice is the most advantageous to the company. Satisfactorily determined the type of value, (e.g., cost of fair value) that you would use to report the subsidiary’s net asset in the subsidiary’s financial statements, which the company will distribute to the public with the public offering. Satisfactorily provided support for your rationale. the two (2) choices. Thoroughly selected the choice that you consider to be the most advantageous to your company. Thoroughly explained to the Board of Directors at least three (3) reasons why your selected choice is the most advantageous to the company. Thoroughly determined the type of value, (e.g., cost of fair value) that you would use to report the subsidiary’s net asset in the subsidiary’s financial statements, which the company will distribute to the public with the public offering. Thoroughly provided support for your rationale. Does not meet the required number of references; some references poor quality choices. Partially free of errors in grammar, spelling, punctuation, or formatting. In-text citations and references Meets number of required references; all references high quality choices. Exceeds number of required references; all references high quality choices. Mostly free of errors in grammar, spelling, punctuation, or formatting. Most in-text citations and references Error free or almost error free grammar, spelling, punctuation, or formatting. In-text citations and references reference section (if applicable, might not apply to some 100 level courses such as ACC100) Weight: 5% 9. Information Literacy/Integration of Sources Weight: 5% 10. Clarity and Coherence of Writing Weight: 5% reference section. not in SWS format. are provided, but they are only partially formatted correctly in SWS style. are provided, and they are generally formatted correctly in SWS style. are error free or almost error free and consistently formatted correctly in SWS style. Serious errors in the integration of sources, such as intentional or accidental plagiarism, or failure to use intext citations. Sources are rarely integrated using effective techniques of quoting, paraphrasing, and summarizing. Sources are partially integrated using effective techniques of quoting, paraphrasing, and summarizing. Sources are mostly integrated using effective techniques of quoting, paraphrasing, and summarizing. Sources are consistently integrated using effective techniques of quoting, paraphrasing, and summarizing. Information is confusing to the reader and fails to include reasons and evidence that logically support ideas. Information is somewhat confusing with not enough reasons and evidence that logically support ideas. Information is partially clear with minimal reasons and evidence that logically support ideas. Information is mostly clear and generally supported with reasons and evidence that logically support ideas. Information is provided in a clear, coherent, and consistent manner with reasons and evidence that logically support ideas. ...
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Tutor Answer

CathieH
School: UC Berkeley

Hey, am through with your work. I have checked it in turnitin and it does not contain any plagiarism. Please find it in the attached document. Thank you.
check_circle CathieH marked this question as complete.

BUSINESS ACQUISITIONS

Assignment on Business Acquisitions
Name of Student:
Name of Professor:
Course Title:
Date:

BUSINESS ACQUISITIONS
Introduction
In the given situation I have assumed that I am the CEO of Walmart and the other company for
which I am responsible for gaining control is J. C. Penney. A brief background of Walmart and J.
C. Penney is provided hereunder.
Walmart Inc.
Walmart Inc. a US based corporation operates a retail chain of discount departmental stores,
grocery stores and warehouse stores. Established on 2nd July 1962 in Rogers, Arkansas, US by
Samuel Moore Walton, its headquarters are located in Bentonville, Arkansas, US. By revenue it
is the world’s largest company with over 11,277 stores worldwide. More than 51% of the
company stocks are owned by the Walton family.
Globally, the company has employed more than 2.3 million with about 1.5 million being in the
US. The company’s chairman is Gregory B. Penner with the president and CEO of the company
being Doug McMillon. Majority of the merchandise the company deals in are supermarkets,
hypermarkets, cash and carry, apparel and footwear, discount stores, eCommerce, etc. In 2017,
the company had $500.34 billion as total revenue, $9.862 billion as net income and $204.52
billion as the total assets. The company’s website is www.walmart.com with its’ ticker symbol
being WMT and slogan being ‘Save Money. Live Better’.
J. C. Penney Company, Inc.
J. C. Penney a US based retail company operates mid-range departmental stores. Founded at
Kemmerer, Wyoming, US on 14th, 1902 by William Henry McManus and James Cash Penney,
the company opera...

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Anonymous
Thanks, good work

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