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    Financial Management

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    Problem:
    Conduct research on contemporary financial management issues (e.g., mergers and acquisitions, leveraged buyout, hostile takeover, global outsourcing, corporate governance). Based on your research, select one contemporary issue and an organization that has created a financial management strategy to manage this issue.

    For this assignment, I selected Caterpillar Inc for the organization and mergers and acquisitions for the contemporary issue. Please evaluate the impact of the selected contemporary issue (mergers and acquistion) on the selected organization (Caterpillar Inc). Please address the evaluation on the following items:

    1) Describe your selected contemporary issue.
    2) Describe the financial strategy that your selected organization has created to manage your selected contemporary issue.
    3) Assess the impact of corporate governance and ethical issues on the organization's strategy.
    4) Evaluate the financial situation of the organization prior to any action taking place.
    5) Assess the financial situation after the action was taken.
    6) Was the organization successful in managing the selected contemporary issue? Why or why not?

    Please provide reference(s)

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    https://brainmass.com/business/mergers-and-acquisitions/financial-management-251575

    Solution Preview

    Problem:
    Conduct research on contemporary financial management issues (e.g., mergers and acquisitions, leveraged buyout, hostile takeover, global outsourcing, corporate governance). Based on your research, select one contemporary issue and an organization that has created a financial management strategy to manage this issue;

    For this assignment, I selected Caterpillar Inc for the organization and mergers and acquisitions for the contemporary issue. Please evaluate the impact of the selected contemporary issue (mergers and acquisition) on the selected organization (Caterpillar Inc). Please address the evaluation on the following items:

    1) Describe your selected contemporary issue.
    The selected contemporary issue is that of mergers and acquisitions. Merger simply means combining two companies. This strategy is adopted mostly to affect the growth of a company. On the other hand acquisition is the act of once company acquiring a controlling interest in another. The direct reason for acquisition is also growth. From the financial perspective, mergers and acquisition give the larger company greater access to finances in form of equity, bonds and bank loans. Usually, this strategy also gives access to larger markets, more profitable terms with distributors, suppliers and customers. Over all growth is possible through mergers and acquisitions.
    2) Describe the financial strategy that your selected organization has created to manage your selected contemporary issue.
    The selected organization is Caterpillar Inc. it has applied the strategy of acquisitions. It has attempted to growth its operations through the acquisition of Progress Rail Services Corporation ...

    Solution Summary

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