Evaluation of a Merger or Acquisition
For your final essay, you will be applying the concepts learned throughout this course to an analysis of a merger or an acquisition. Much of the information you will need to complete this analysis can be found in the company’s annual report. You may choose any recent merger or acquisition (within the last 5 years). Using the concepts from this course, you will analyze the success of the merger or acquisition.
The completed project should include the information listed below.
Provide an introduction to the companies involved in the merger or acquisition. Include the companies background information and the reasons for the merger.
Evaluate the financial statements of both companies (balance sheet, income statement, cash flow statement).
Evaluate the potential and actual risks that occurred during the merger and what the companies could have done differently to mitigate these risks.
Discuss the companies management of human capital in the merger or acquisition.
Evaluate the soundness of the companys financial policies after the merger (e.g., capital structure, debt, leverage, dividend policy, enterprise risk management, and others.) based on the material covered during class.
Include a synopsis of your findings, including your recommendations and rationale for whether the merger or acquisition was beneficial to both companies and your recommendation on best practices for moving forward.
This analysis should be at least three pages in length, not counting the title and reference pages