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Identifying synergistic acquisition candidate

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This will be a report to the board of directors that identifies a synergistic acquisition candidate for your company.

i. This report should clearly identify the following:
1) Your proposed acquisition terms
2) Price
3) Financing
4) Potential negotiation strategies
j. Supporting financial data should include the following:
1) Price/earnings ratios
2) Book value
3) Current market value
4) Liquidation
5) Diluted price per share
6) Capital Budgeting tools learned from FIN 544 (NPV, IRR, Profitablility index, payback - optional: Discounted Payback and Modified Internal Rate of Return)
k. Discuss the general risks inherent in an acquisition strategy.
l. Discuss the specific risks that should be included in the quantitative analysis. For example, what risk factors should be included in the discount rate (sometimes known as the hurdle rate, or required rate of return).

Note: Use MS Excel® spreadsheets as support showing your computations where applicable.

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Solution Summary

The solution produces a report that discusses synergistic acquisition for your company. This report is directed to the board of directors.

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