Merger Analysis

For the corporation that has acquired another company, merged with another company, or been acquired by another company, evaluate the strategy that led to the merger or acquisition to determine whether or not this merger or acquisition was a wise choice. Justify your opinion.

The case study has been approached from different valuation methods to ascertain if there is value in the acquisition of Southern Comfort. These methods all yield the same result, i.e. Southern Comfort is expensive at the asking price of $94.6million. The valuation methods also examined the reasonableness of the acquisition using methods such as Free Cashflow Analysis, Book Value methods and Price Earnings ratios analysis

Based upon my knowledge learned on financial reporting, I had compared to companies reporting statistics. The two companies in comparison are PepsiCo Incorperated and The Coca-Cola Company in which both have reported annual statistics for 2004 and 2005. During my comparison of net incomes, gross expenses, stock statistics, and assets accumulations, I have suggested some strategies for each business to take into consideration for better future results. As an accountant in training, I will be giving specific details of my analysis and recommendations, as these are my opinions for financial success.

This research paper is prepared for purposes of assessing financial condition as well as overall operating performance of two same sector entities.

Executive Summary Business and Industry Analysis Competitive Advantages Five Forces Model Industry Competitive Analysis Accounting Analysis Key Accounting Policies Degree of Accounting Flexibility Evaluation of Accounting Strategy Accounting Quality of Disclosure Red Flags Quantitative Analysis Ratio Analysis Liquidity Profitability Capital Structure Forecasting Balance Sheet Income Statement Statement of Cash Flows Forecast Summary Valuation Analysis Method of Comparables

aspects to analyze are the financial statements after the merger as well as accounting methodology.

3. Methodology: Investigators must review the literature which is appropriate to various aspects of their chosen method, including design, selection of subjects, and methods of data collection. This section describes research methods and measurement approaches used in previous investigations in the area. This content should be considered in designing the proposed research and used to support

course instructor Ms. Tarana Majid orally authorized the task of preparing the report to a group of student. She gave this report to learn the way to analyze the financial statements. To follow the syllabus of our subject so we have to do some relevant study based on our report. That’s why this topic comes forward.

Only a minimum level of legal requirements are request to enter and operate in the market and very low responsibility for the merchandise sold for a very short period of time, therefore the exit barriers are low as well.

This report has been produced to compare the financial statement of two companies in the food and beverages industry. Mayora and Delta Djakarta are both well-known companies. These companies are listed in the Indonesian Stock Exchange (IDX) with their respective codes (MYOR) and (DLTA). As the both of them are rivals in the industry, this report will provide myriad of detailed analysis to compare and contrast the financial statement of the companies. And take into account the liquidity or ability of a firm to overcome its current obligations, and its durability which is the company’s ability to repay its debts and other obligations.

Table 5: Profile of financial ratios of The Bank of Rajasthan and ICICI Bank for three financial years prior to merger (in percentages)

Devarajappa S (2012) in their research explored various motives of merger in the Indian banking sector. It further compared pre and post merger financial performance of merged banks by using various financial parameters. The result suggested that post merger, the financial performance of the banks have improved, particularly, the return on equity, debt-equity ratio and Gross Profit ratio have shown significant improvement after the merger.

Some of the gathered data such as the firm’s historical financial statements are adjusted so as to prepare the inputs required for the firm’s valuation methods and hence it leads us to the second step. The main financial statements required for the firm’s valuation are the income statement and the balance sheet that are produced by the accounting process. This further shows the relationship between firm valuation and accounting. The best way to value a firm with a historical approach would be looking at the historical statements, income statement and balance sheet. Smaller firms should be looked at the last three to five years while larger firms should have a longer period to check. Due to the fact that, business owners have considerable discretion in how they use the firm’s assets and also what expenses and income they recognize, this rise the need to adjust the firm’s historical records. Constructing an accurate relationship between the required firm’s assets and

This research project is submitted to the School of Pure and Applied Science of the Karatina University in partial fulfillment of the requirement for the degree of Science in Actuarial Science.

Mergers and acquisitions are one of the popular topics in business today, since they characterize the new economy: pressure of global competition, development of technology and disappearance of country boundaries. The purpose of this project is to study how mergers and acquisitions affect the share prices of the acquirer bank. We have taken up seven banks as a part of our case study analysis and have made an attempt to study the share price pattern of Transferee Banks before and after merger on a monthly basis by drawing out graphs and using correlation and regression.