you will construct a document that will give the background to a bid, a valuation of the target company, the offer presentation and arguments from the bidder (Tesco PLC), the defense arguments from the target company (Ocado Group PLC), a regulatory appraisal of the bid, and a summation of the chances of the bid succeeding. An important part of the M&A process is selecting attractive merger candidates. Thus, in the first part of your assignment, pretend that you work for the M&A department of an investment bank and you would like to earn a commission on an M&A transaction. Select a potential bidder company and attractive target for that bidder. Your bids will be fictitious, but you should proceed as if they were real bids. To facilitate the valuation process, it is recommended that both companies are based in the UK and publicly listed with financial data. Also keep in mind that a regulatory appraisal will need to be made, so you may wish to choose combinations likely to be reviewed by regulatory authorities. It is OK if you find that what initially looked like attractive merger candidates turned out not to be after closer inspection. make sure you cover the following points: industry background recent trends and deals, etc. Discuss how these industry trends contribute to a merger being beneficial between your bidder and target (How These Trends will Benefit the bidder). Background on the two companies: SWOT analysis of the two companies Comment on recent stock market performance by the companies.
you will construct a document that will give the background to a bid, a valuation of the target company, the offer presentation and arguments from the bidder (Tesco PLC), the defense arguments from the target company (Ocado Group PLC), a regulatory appraisal of the bid, and a summation of the chances of the bid succeeding.
An important part of the M&A process is selecting attractive merger candidates. Thus, in the first part of your assignment, pretend that you work for the M&A department of an investment bank and you would like to earn a commission on an M&A transaction. Select a potential bidder company and attractive target for that bidder. Your bids will be fictitious, but you should proceed as if they were real bids. To facilitate the valuation process, it is recommended that both companies are based in the UK and publicly listed with financial data.
Also keep in mind that a regulatory appraisal will need to be made, so you may wish to choose combinations likely to be reviewed by regulatory authorities. It is OK if you find that what initially looked like attractive merger candidates turned out not to be after closer inspection.
make sure you cover the following points:
- industry background
- recent trends and deals, etc.
- Discuss how these industry trends contribute to a merger being beneficial between your bidder and target (How These Trends will Benefit the bidder).
Background on the two companies:
- SWOT analysis of the two companies
Comment on recent stock market performance by the companies.
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