Net Present Value, Mergers and Acquisitions

Groupon is a deal based business that brings customers discounted deals from the businesses. As a result of massive success and the growing competition, the business is faced with the option of either selling to Google or developing an effective marketing strategy for continuing its own. In the due context, the underlying report proposes a marketing plan for successfully dealing with the market challenges (Chatterjee, O”Keeffe, and Streiff, 2012).

The difference between the present value of an investment?s future cash flows and its initial cost is the:

9. You are analyzing the value of a potential investment by calculating the sum of the present values of its expected cash flows. Which of the following would lower the calculated value of the investment?

It is calculated by taking the present value of future cash flows minus the initial investment (Byrd, 2012). George has statements from previous years that document cash flows and business cycle trends. These statements include the timing and magnitude of cash flows, which include increased cash flows in the summer due to tourism, and reduced cash flows during income tax time. Using previous cash flow statements can help anticipate and calculate future cash inflows of a potential investment, such as the purchase of a Race Car or small train line, and can provide George with an accurate picture of the project 's Net Present Value.

Groupon targeted consumers with emails, and social media exposure such as Twitter and Facebook. Advertising relied on word of mouth from friends and families, and referral vouchers. Groupon also engaged in marketing campaigns related to gimmick consumer challenges to drive activity in an attempt to increase email subscribers. The positives of Groupon to the consumer were the perception that products and services were being acquired and utilized for a discounted price. The perception that a consumer was receiving a discounted deal was very

Groupon, Inc. (“Groupon”) is a company that specializes in local commerce. It has relationships with companies on a global scale and alerts consumers on the hottest deals with respect to shopping for various products, travel destinations, and popular spots, goods and services that a city has to offer. The stock ticker for the company on the NASDAQ exchange is “GRPN.” The company is listed under the sector ‘Technology’ and industry ‘Internet Information Providers.’ It started off as ‘ThePoint.com, Inc.’ but in October 2008 it changed its name to ‘Groupon, Inc.” Groupon was founded in 2008 by the now ousted CEO Andrew Mason. The current CEO is Eric Lefkofsky who initially invested $1,000,000 toward the development of the company. The Chief

Groupon has been called the fastest growing company in history. The idea of offering real discounts to people in local markets, providing signature daily deals and exposing people to new products and services at deeply discounted rates has attracted a groundswell of consumer support and influenced other companies to start similar businesses.

frequently estimated by calculating the present value of future cash flows (to estimate market value) and then subtracting the cost

Groupon is an advertising platform that is largely geared towards serving local markets. Businesses can use Groupon to promote their own discounts (vouchers) for services and products. Groupon helps facilitate connections between businesses looking for customers and customers looking for deals.

Groupon is a deal-of-the day Internet start-up company that was launched in 2008 in Chicago.

Groupon is a deal-of-the-day website that is localized to major geographic markets worldwide. Launched in November 2008, the first market for Groupon was Chicago, followed soon thereafter by Boston, New York City, and Toronto. Groupon has over 50 million subscribers across 300 cities in more than 40 countries. The idea for Groupon was created by Andrew Mason who is currently the company’s CEO. [update]Groupon serves more than 150 markets in North America and 100 markets in Europe, Asia and South America and has amassed 60 million registered users. The growth in the future is likely to be at a slower pace, primarily because the company is already one of the largest in the local deals space.

I believe that Groupon has become successful for many different reasons. First of all, Groupon was the first to transport the traditional “Coupon clipping” to the online world. This opened many opportunities. It was something new, exciting to consumers that they hadn´t seen in this way. So Groupon had a first mover advantage even though they only connected already existing ideas and technologies in a new way. By being online Groupon could reach many, possibly millions, of people at once. This was a strong argument when Groupon talked to local merchants. As most of these merchants did not have an extensive marketing budget and were not necessarily familiar with new

Google has acquired over 100 companies and in my opinion, its most intelligent acquisition was of Youtube. When Youtube first started to make its mark on the web in 2006, Google

Google Inc. is a US based multinational company operating across glob using internet as its major medium of providing services and products solutions. These include but not limited to:

The Net Present Value is one of the techniques that are used by firms when evaluating which investment proposals to take on board and which ones to reject. The net present value is calculated by discounting all flows to the present and subtracting the present value of all inflows.