Suggested Solutions for Tutorial 3

Suggested Solutions for Tutorial 3 - 1 Suggested Solutions...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Suggested Solutions for Tutorial 3 Please note that following suggested solutions are only very basic points and you need to read the textbook and other reference materials for better understanding. 4. Typically, an investment bank will act on behalf of a company involved in a merger and acquisition. (b) What roles might the investment bank play in the merger and acquisition? analysis of the target company—is the company a strategic fit as far as size, geographic location, business mix, operational capacity, financial strength and availability for takeover valuation of the company—application of sophisticated quantitative valuation models, IRR, net present value, forecast future cash flows establishment of contacts—bring the parties together (investment bank and executives of target company), establish confidentiality agreements transaction structures—the takeover could involve a cash offer, a share offer, an asset swap or a combination of these methods. Need to consider legal, taxation and accounting issues negotiation—to achieve the best possible outcome for the parties to the transaction due diligence—detailed analysis of the financial and operational capacity of the target company nature of the takeover—will the target company resist (hostile takeover); will other competitors also make an offer communication with the market—need to inform relevant stock exchanges, regulators, shareholders, investment analysts and media project management and integration—develop the proposal within constraints of confidentiality, time, accuracy, transparency. Support all stages of the development, acceptance and application
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 3

Suggested Solutions for Tutorial 3 - 1 Suggested Solutions...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online