Cooper Industry, H.K. Porter Company and Vln Corporation

Wheeler Electrical Supplies, Inc. is a C corporation that used to be owned by four individuals. Because the business has been operating at a loss for the past several years, three out of the four shareholders decided to sell their outstanding shares to Angela Clay, the one shareholder convinced that becoming the sole owner herself will allow her to run a profitable business again.

According to the researchers the increased value results from an opportunity to utilize a specialized resources which arises solely as a result of the merger (Jensens & Ruback, 1983; Bradle, Desai and Kim , 1983). For creating operational and financial synergies managers believe that two enterprises will be worth more if merged than if operates as two separate entities. Thus, the two companies, A and B:

Wheeler Electrical Supplies, Inc. is a C corporation that used to be owned by four individuals. Because the business has been operating at a loss for the past several years, three out of the four shareholders decided to sell their outstanding shares to Angela Clay, the one shareholder convinced that becoming the sole owner herself will allow her to run a profitable business again.

DO YOU AGREE WITH MR. WILSON 'S ESTIMATE OF THE COMPANY 'S LOAN REQUIREMENTS? HOW MUCH WILL HE NEED TO FINANCE THE EXPECTED EXPANSION IN SALES TO $ 5.5 MILLION IN 2006 AND TO TAKE ALL TRADE DISCOUNTS?

A broader view of objectives indicate that long-term opportunities exist in areas such as supply chain improvement, acquisition synergies, and increased pharmaceutical sales. The merger with Alliance Boots provides a ripe platform for negotiation

SET IN MAY 2008, THIS CASE REFLECTS THE SEPARATE PERSPECTIVES OF CHIEF EXECUTIVE OFFICERS TOM ELIOT AND BILL FLINDER AS THEY APPROACH THE NEGOTIATIONS OF RSE INTERNATIONAL CORPORATION TO ACQUIRE FLINDER VALVES AND CONTROLS INC. YOUR TASK IS TO COMPLETE A VALUATION ANALYSIS OF THE TARGET AND BUYER AND TO NEGOTIATE A PRICE

The buyers for mining industry usually have medium to high power. There are two elements that could affect the buyer’s power. One is buyer’s level of negotiation; the other is buyer’s price sensitivity. In our case, the two companies are producing coal and uranium. These two products are mainly used for producing electricity. Buyers for these natural resources must have large quantity of demand, and also they usually have government behind them for negotiation. Even through these natural resources are unrenewable and limited, there are other mining companies producing them and these resources are undifferentiated from other companies products. This makes the buyers have high

2. Evaluate the two offers in Exhibit 7. What explains the two structures? In each case, what is the value to MCI shareholders?

David Jacob should analyze the situation with different interests in mind. Since he was looking for an exit from this business that he built from perseverance and hard work, it would be to his benefit to obtain the maximum amount of money possible from the sale. This makes the strategic buyers more favorable. However, His sons who currently work for the company would probably lose their jobs. Finally, taking in consideration of his age of 70, which is an age where he would probably want to just enjoy his life as much as possible, we would say that he should choose to sell to the strategic buyer and take the higher premium and just leave the business completely.

To resolve the ownership situation of Midwest Lighting, (MLI) Inc Peterson and Scott have to sit down with their financial managers, evaluate the company and then decide that one of them will buy out the other from the company. And with the history of the company having being formed with Peterson’s father, it would be prudent that Jack Peterson be given the opportunity to buy out Scott from the company since his family only joined in years after the Petersons had started it and bought out Julian Walters.

The net present value (NPV) of each option has been calculated and included in Table 1, based on figures from the study group report. Unfortunately, these figures are flawed in the same manner as Wriston’s current performance and accounting mechanisms in that they don’t properly allocate revenue, nor do they recognize inherent manufacturing complexities. The plant closure option’s expected operational gain seems particularly suspect. A better valuation of the new plant options is perhaps

Moreover, Cooper’s corporate strategy is diversification through acquisitions and mergers. This diversification is in both related and non-related

The Venrock/BVP offer an inside round at 98.5¢ per share. The pre-money was roughly $25 million. They would share the $10 million, with Venrock taking more to increase its ownership, and leave the round open for another $5 million, getting the deal done at $15 million with an option to close as high as $18 million.

Ans. Lincoln has not been very successful in making successful and profitable acquisitions outside of North America, especially when the company has tried to enter a market strictly through the acquisition route. Inexperience of Lincoln’s executives with trade-unions and lack of knowledge of labor practices and laws in other countries proved major stumbling blocks in the effort to integrate the new acquisitions into Lincoln’s distinctive management culture. Local managers and employees are not convinced that these practices are appropriate for their local environment. As a result the Lincoln has realized that it would rely more on joint ventures and strategic alliances rather than an acquisition. In consonance with its investment philosophy Lincoln would only go forward with an acquisition only if it is immediately accretive, the investment had a minimum internal rate of return of 10%, increasing it to over 18% in 3-4 years also the acquisition should be done at less than 8XEBITDA. Since India is a booming market, Lincoln would not be able to achieve its initial investment goals, any acquisition would require paying up a premium. One of the target companies is already owned by the competitor and other local target had a company of family ownership and dispersed ownership structure.

Based on the given information in the case study regarding the acquisition of Nicholson File Company by Cooper Industries, there is no question that Cooper should try to gain control of Nicholson. This decision is based on an analysis of the bargaining positions of each group of Nicholson stockholders which have disparate goals and needs that need to be met. In addition, an appropriate payment method and specific dollar value based on a competitor's offer and Cooper financial data was decided. The remainder of this paper will provide the analysis and rationale for this determination.