Panera Bread Company Acquisition : Introduction And Recommendation

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Panera Bread Company Acquisition Introduction and Recommendation VCM Capital Partners has a great history and long tradition of creating value for investors based upon the founder’s principles – providing support for growth and operational excellence in the companies acquired. Companies acquired by VCM are only held for a short period, typically five to ten years, and they anticipate that most improvements will begin within the first 100 days. Currently, VCM is considering acquiring the fast-casual dining chain, Panera Bread, and is hoping that the complete analysis will show that they will be a great fit for its funds, and a promising addition to the current portfolio. The following is a compilation of various financial data, analyses…show more content…
It is ideal that a situation such as this acquisition be thoroughly analyzed prior to a decision being made. To examine a company in a complete manner, the analysis should include both inductive and deductive elements, start with a hypothesis, and use “insight as a process”, per, 2012. These principles have been considered while analyzing Panera and its competitors. Information, Evidence, and Assumptions The financials provided are considered appropriate to evaluate and reach a conclusion regarding the acquisition of Panera Bread. VCM Capital Partners only holds companies for five to ten years, and is well managed financially. Since VCM has a loyal following of investors, it is pertinent that they acquire appropriate companies that will add to VCM’s wealth, support the investors, and provide an expected return that is in the realm of expectations. All financial assumptions are based off both historical and forecasted data, and comparable competitor data. This information also provides valuation assumptions, which are always involved in acquisition decisions. The analysis completed is based more off the “Red Ocean” approach, as current states of financials tend to be more solidified data. Using the “Blue Ocean” approach, considering both current and future states, is also beneficial if there is not a large emphasis placed on the forecasted/future
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