Acquiring Company is considering the acquisition of Target Company in a stock for stock transaction in which Target Company would receive $50.00 for each share of its common stock. The […]
Finance
What should BigCo expect to pay for PrivCo per share?
BigCo’s Chief Financial Officer is trying to determine a fair value for PrivCo, a non-publicly traded firm that BigCo’s is considering acquiring. Several of PrivCo’s competitors, Ion International, and […]
Weighted average cost of capital Kandenko Co
Japanese electrical engineering firm Kandenko Co. plans to acquire a 40% ownership stake in a Philippine peer, PHOC Co., as part of its global expansion. The current Japanese Treasury […]
The value of Wind Data’s equity
CSMAR is a leading financial data provider and aims to acquire its direct competitor, Wind Data. The CSMAR estimate Wind Data has sales of $40 million and after-tax income […]
Acquiring IBM shareholders respond negatively
In October 2018, IBM announced to acquire software maker Red Hat Inc. in a $33.4 billion deal. The share price of Red Hat increased more than 45%, while IBM share […]
The acquiring and target firms
The primary motivation for M&As is an attempt to realize synergy by combining the acquiring and target firms. However, the estimation of synergy is challenging. The acquirer often overestimates […]
Discourage unwanted bidder
Xon Enterprises is attempting to make a hostile takeover of the target, Rayon Group. After receiving Xon Enterprises hostile takeover offer, Rayon’s shareholders have the right to buy additional shares […]
Factors influence a parent firm’s decision
a) What factors influence a parent firm’s decision to undertake an equity carve-out rather than a spin-off? Explain the reasons. b) What is the major drawback of equity carve-out? […]
Business with high growth potential
Do you agree with the following statement? Explain the reasons. “A business with high growth potential may not be a good candidate for an LBO.”
Auditing Allnet’s financial statements.
Tana Thorne works in a public accounting firm and hopes to eventually be a partner. The management of Allnet Company invites Thorne to prepare […]