FIN501 MOD5 SLP5-Net Present Value, Mergers, and Acquisitions

FIN501 MOD5 SLP5-Net Present Value, Mergers, and Acquisitions

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Running head: NET PRESENT VALUE 1 Net Present Value, Mergers, and Acquisitions Mikel A. Stovall TUI University January 5, 2012
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NET PRESENT VALUE 2 Net Present Value, Mergers, and Acquisitions The purpose of this essay is to address possible merger candidates for Visa Company and examine takeover possibilities for the company. Visa is a financial services company whose main product is payment services. The company is not a credit card issuer nor do they establish interest rates or fees for the consumer. Visa’s financial institutions establish and maintain cardholder relationships and Visa derives its revenue from fees and processed transactions. Since 1958 Visa has been a leading pioneer in credit card platforms and has built a reputation for security, convenience, fraud protection, and guaranteed payments for merchants (Visa, 2011). Thus, if I were to pick one company for Visa Company to merge with, the company would be Discover Financial Services. The benefits of the merger would be that Visa Company would benefit from tax shields because of carried forward loses of Discover Financial Services. Additionally, several other opportunities exist for Visa as
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This note was uploaded on 03/25/2012 for the course FIN 501 taught by Professor Dr.joshuashackman during the Winter '10 term at Trident Technical College.

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FIN501 MOD5 SLP5-Net Present Value, Mergers, and Acquisitions

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