The final project for this course is the creation of a merger proposal for two companies. You will choose two companies and will have to analyze and then propose a merger. The purpose of this project is to simulate the aspects of a real world merger. This project is divided into three milestones, submitted in Module Three, Module Seven, and Module Ten.
To successfully complete this project, you will be expected to apply what you have learned in this course and should include several of the following course outcomes and learning objectives:
Analyze the role of corporate restructurings in the corporate world by assessing the value added and synergy from mergers and acquisitions
Compare and contrast mergers and acquisitions by examining each and evaluating the effect on corporations
Analyze the financial and economic impact of mergers and acquisitions by applying the principles of capital structure, firm valuation, cost of capital, capital budgeting, and quantitative risk assessment
Analyze the potential success and/or failure of a merger deal by reviewing the post-merger performance and valuation of the company
Apply managerial decision-making strategies with mergers and acquisitions to companies, based on comprehensive research and analysis of recent, similar deals
Present scholarly papers through research, preparation, and analysis of contemporary merger and acquisition issues
Part I: Introduction
Choose two companies in the United States.Describe the companies and their products and respective industries.Provide a brief analysis of their annual financial reports (last three years).Provide a trend analysis of financial ratios over the three years. In your trend analysis, analyze the company in terms of liquidity, profitability, market value, and capital structure.