Acquisition of YVC

Essay by singhs14University, Master's May 2008

download word file, 6 pages 3.0

Downloaded 75 times

MBL922N ASSIGNMENT 2 � SUBJECT \* MERGEFORMAT �

TABLE OF CONTENTS

51. EXECUTIVE SUMMARY �

62. STRATEGIC ANALYSIS �

73. QUALITATIVE ANALYSIS �

84. QUANTITATIVE ANALYSIS �

95. RECOMMENDATIONS �

106. BIBLIOGRAPHY �

�

�

EXECUTIVE SUMMARY

The report should assist all the shareholders understand and establish if the acquisition is worth investing in.

This report presents the valuation of YVC for the proposed acquisition by TSE, who will acquire the majority shareholding (?).

The main objective is to ensure that we account for every value of YVC and their brighter future prospects, as well as to identify the best price to sell YVC.

In addition, the following objectives have also been identified in the case study:

Acquisition of Yeats Valves by TSE International Corporation

Creation of shareholders wealth for YVC

TSE Financial stability

YVC brighter future prospects

Growth strategy for YVC

W.B. "Bill" Yeats, chairman, CEO and founder of YVC is about to retire and he is concerned about what's going to happen to YVC going forward.

His major concern is what will happen to the shareholders value as his top management is very specialised compared to the multi-skill business management person that YVC needs to run successfully.

In addition, a number of other compelling reasons existed besides his retirement and the problem of management succession. i.e. the company needed a deep-pocketed partner in order to expand and to bankroll more research and development projects; YVC also believed that the company would benefit from gaining access to a large marketing and distribution networks and lastly as the company continued to grow, it needed to gain more expertise on high-volume manufacturing.

�

STRATEGIC ANALYSIS

Rationale for Merger

Strategic reasons for the merger, i.e., reasons why the merger would be good for YVC. What are the synergies to be gained?...