Bank Of The Shaw Group : Prospectus Analysis And Opinions

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CB&I Acquisition of The Shaw Group: Prospectus Analysis and Opinions
From Shaw’s Side of the Table

Ethan G. Vesling
April 2015

In this paper, I begin by describing and assessing the different criteria financial analysts within Fortune 500 companies use to evaluate merger success and acquisition rationale. I also discuss what these strategies can imply about the sources of gains and losses on each company’s stock price, and the factors that drive merger success in the long run. I then discuss the firsthand evidence of this merger and acquisition by examining transaction details from both parties and transitioning into an analysis of CB&I’s strategy for post-merger integration. Finally, I discuss the implications of
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Shaw was a leading provider of EPC services to the energy sector with a focus on power generation, which according to Mr. Bevan was attractive to CB&I because it complemented its resources and standing as a builder of energy infrastructure projects for the hydrocarbon sector (Site Resource). It was interesting to hear Mr. Bevan’s analysis of the transaction because you could in his eyes the passion he displayed for the accomplishments of the company, as well as, his emotional connection to the firm and sadness that it was only now just history. Another guest speaker this semester, Jacques Waguespack of Preservation Title, LLC stressed the importance of a mentor on career development, especially to debate future trends and develop experience. He stated that experience is worth 1000x your starting salary. This is something Mr. Bevan echoed. He was quick to point out the trust form superior leaders is gained through building relationships, prioritizing goals and executing your work to your fullest potential. All those lessons were apparent as he continued to share his story of the Shaw Group acquisition.
Mr. Bevan was very proud to share that the resultant company of the merger resulted in 50,000 CB&I employees around the globe. The company was now a dominant player and was able to provide clients with a wide
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