183662258 Group 6 M A MellonBNY Case Pdf

With Paint-Pen having a debt ratio of 22.74%, Paint-Pen is less risky and has high debt capacity. Adding this high capacity to borrow will add to the value of the combined firm. This acquisition will increase the debt capacity of the combined firm. Aside from the tax benefits that can be exploited after acquiring Paint-Pen, Mr. Hamer’s firm can also put value to the effect of diversification as the firm can diversify by just at the acquisition cost (less other synergies).

2.) What is the ‘relevant range’ for the cost structure? In other words, at what volume might you expect the fixed and variable costs to change appreciably?

2. Do you favor the proposed acquisition of UCP? What are the primary sources of value in such a transaction? Is the proposed price reasonable?

As for the combination of cash and new shares, shareholders can take part of their money

3. Should Midland use a single corporate hurdle rate for evaluating investment opportunities in all of its divisions? Why of why not?

17. St. Augustine Company is trying to decide which one of two contracts it will accept. The costs and revenues associated with

2) If you were the responsible manager at the ASIC Division, would you accept Western's offer?

d. How much overhead cost do you think Bridgeton and the consultants implicitly assumed they would save by outsourcing these two products?

A merger is a partial or total combination of two separate business firms and forming of a new one. There are predominantly two kinds of mergers: partial and complete. Partial merger usually involves the combination of joint ventures and inter-corporate stock purchases. Complete mergers are results in blending of identities and the creation of a single succeeding firm. (Hicks, 2012, p 491). Mergers in the healthcare sector, particularly horizontal hospital mergers wherein two or more hospitals merge into a single corporation, are increasing both in frequency and importance. (Gaughan, 2002). This paper is an attempt to study the impact of the merger of two competing healthcare organization and will also attempt to propose appropriate

Coming out of the first year of the merger, what new opportunities should the new “Defining Entity” pursue in order to grow business?

3. What restructuring option – Icahn’s spin-off proposal or the company’s targeted stock proposal – will create the most value for shareholders? For creditors? For the firm’s other stakeholders?

To materialize the negotiation with the Sakari, we (Nora) will accept the Sakari’s proposal about the technology and salaries and perks of the Finnish expertise. Beside this, we will propose different place either in Asia or in Europe for future conflict resolution. Not only this but also a third country will be chosen as a venue for the possible future conflict. Beside this, 40 to 60 percent of equity ownership will be proposed to ensure the relative control of the both parties in JV Company.

The number of shares outstanding will remain the same and thus, the only change in the equity side of the balance sheets for the next three years will be the change in the amount of retained earnings. This change will be equal to the net income of the company for last year because the company will not pay a dividend.

WACC (Weighted Average Cost of Capital) - When we are supposed to value AirThread Connections with the WACC valuation method we will have to use the following steps:

The previous 959.6m Amoco shares will convert into 633.336m shares of BP ADS equivalent, with the previous 965.6m ADS shares, BP shareholders will take part 60% of the new company, still have majority control over the firm. In this deal, we paid for about 20% premium, which is quite standard and normal. Because synergies from revenue and chemical divisions’ combination are not estimated nor not expected to bring benefit, the main synergy from the merge is 2 billion dollars saving of pretax operating cost. The value we create for our shareholders is $14,840.06 million (Amoco stand-alone value $46,430 million+ synergy $2 billion – price paid for Amoco $33,538.94). But this number is quite sensitive to a lot of factors, such as future energy demand, oil and gas price, industry growth potentials, ultimately affecting Amoco’s stand-alone and synergy valuation. Please