437 Final Case - 1 Does Broadway benefit from acquiring Landmark How can Harris justify a $120 million bid for Landmark From multiple viewpoints

437 Final Case - 1 Does Broadway benefit from acquiring...

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1. Does Broadway benefit from acquiring Landmark? How can Harris justify a $120 million bid for Landmark? From multiple viewpoints Broadway will most definitely benefit from the acquisition of Landmark Facility Solutions. This is due to a number of key factors, first of which being the economies of scale synergy. As Broadway is currently already a large scale and diverse facilities- services provider on the East coast, it will surely benefit from the acquisition of other profitable facilities-services firms. Due to supply chain limitations as well as management perspectives and even corporate space, Broadway will be able to reduce many costs commonly shared by both companies. Another way Broadway will benefit from this deal is from a larger customer base. By acquiring Landmark and essentially all of its clients, Broadway will be increasing revenue as well as its market share, brand recognition and even its ability to diversify more. Current projections for a diversifying facilities-services provider is 6% annually, while a single-service provider is only expected to grow at 4% annually. (Fruhan 2) Based on both these forecasts and
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  • Fall '15
  • Ben Chen
  • Landmark Facility Solutions, Broadway shareholders

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