...1 A Mercury pode ser considerada um bom target para a AGI como pode também ser considerada um mau target para a aquisição. Esta aquisição pode ser vista como positiva na medida em que permite obter sinergias entre as duas empresas, beneficiar de economias de escala, aumentar a capacidade negocial da empresa para com os seus clientes e para com os fornecedores e diversificar a carteira de produtos, pois as duas empresas apesar de actuarem no mesmo sector tem consumidores e produtos diferenciados, o que permite diversificar o risco com a fusão. Assim, se após a fusão se conseguir sinergias operacionais e financeiras na empresa, o que permite diminuir custos e obter ganhos na produção e distribuição dos produtos e se a empresa conseguir maior capacidade negocial que permita estabelecer contractos mais vantajosos junto dos fornecedores e dos clientes a aquisição da Mercury por parte da AGI será benéfica para a empresa. Esta aquisição pode ser vista como negativa na medida em que as empresas apresentam resultados muito diferentes entre si, bem como culturas próprias, o que leva a que após a aquisição a empresa não apresente o desempenho desejado. Uma dessas diferenças é a taxa de crescimento das vendas, que apresenta valores muito diferentes entre as duas empresas. Outra diferença que pode ser apontada é a do ciclo de produção, que se reflecte na gestão de stocks. As duas empresas apresentam saldos médios de stocks muito diferentes, sendo que a AGI apresentava um valor...
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...Deccan-Kingfisher Combine To Look At Share Sale December 20, 2007 Deccan Aviation will merge the scheduled airline operations of unlisted Kingfisher Airlines, to create one of the biggest air carriers in the country and pave the way for the latter to fly overseas. The combined operations will need about USD$250 million - USD$300 million over the next two quarters and it may look at private placement of shares, UB group Chief Financial Officer Ravi Nedungadi said. India's top spirits maker UB group, which runs Kingfisher Airlines, bought a 26 percent stake in Deccan in May and subsequently raised it to 46 percent. Deccan will be called Kingfisher Airlines after the merger and the charter operations of Deccan will be spun off into a separate firm to be equally owned by Deccan's founder G.R Gopinath and the UB group, Deccan said. The combined entity will operate the two brands -- Deccan, a low-cost airline, and Kingfisher, a full service carrier, Nedungadi said. "The two board's have taken a decision. The legal process will take anywhere between 4-6 months. From an organizational point of view the the integration is already on the fast track," he said. The merger was recommended by consultancy firm Accenture and the merger methodology will be suggested by consultants KPMG and Dalal and Shah. "The merger will be structured in such a way to allow us to carry forward the accumulated losses," Nedungadi said. The two airlines have a combined loss of about INR20 billion...
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...HINDALCO - NOVELIS ACQUISITION: CREATING AN ALUMINIUM GLOBAL GIANT AUTHORS INFORMATION: NAME : 1. AMAN SRIVASTAVA, Assistant Professor, Jaipuria Institute of Management, Noida, asrivastava@jimnoida.ac.in 2. RAKESH GUPTA, Associate Professor, IILM, Greater Noida, guptark123@rediffmail.com ABSTRACT HINDALCO - NOVELIS ACQUISITION: CREATING AN ALUMINIUM GLOBAL GIANT Last decade witnessed growing appetite for takeovers by Indian corporate across the globe as a part of their inorganic growth strategy. In this chain Indian aluminium giant Hindalco acquired Atlanta based company Novelis Inc, a world leader in aluminium rolling and flat-rolled aluminium products. Hindalco Industries Ltd., acquired Novelis Inc. to gain sheet mills that supply can makers and car companies. Strategically, the acquisition of Novelis takes Hindalco onto the global stage as the leader in downstream aluminium rolled products. The transaction makes Hindalco the world's largest aluminium rolling company and one of the biggest producers of primary aluminium in Asia, as well as being India's leading copper producer. The case study attempts to analyze the financial and strategic implications of this acquisition for the shareholders of HINDALCO. The case explains the acquisition deal in detail and highlights the benefits of the deal for both the companies. Followings are the main issues to be discussed for critical review of this case: What is the strategic rational for this acquisition...
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...TO BE INTRODUCED IN LOK SABHA AS INTRODUCED IN LOK SABHA BILL NO. 77 OF 2011 THE LAND ACQUISITION, REHABILITATION AND RESETTLEMENT BILL, 2011 ———— ARRANGEMENT OF CLAUSES ———— CHAPTER I PRELIMINARY CLAUSES 1. 2. 3. Short title, extent and commencement. Application of Act. Definitions. CHAPTER II DETERMINATION OF SOCIAL IMPACT AND PUBLIC PURPOSE A.—PRELIMINARY INVESTIGATION FOR DETERMINATION OF SOCIAL IMPACT AND PUBLIC PURPOSE 4. 5. 6. Preparation of Social Impact Assessment Study. Public hearing for Social Impact Assessment. Publication of Social Impact Assessment Study. B.—APPRAISAL OF SOCIAL IMPACT ASSESSMENT REPORT BY AN EXPERT GROUP 7. Appraisal of Social Impact Assessment Report by an Expert Group. C.—EXAMINATION OF PROPOSAL BY A COMMITTEE CONSTITUTED BY THE APPROPRIATE GOVERNMENT 8. 9. Constitution of committee to examine proposals for land acquisition and the Social Impact Assessment Report. Exemption from Social Impact Assessment. CHAPTER III SPECIAL PROVISIONS TO 10. SAFEGUARD FOOD SECURITY Special provisions to safeguard food security. CHAPTER IV NOTIFICATION AND ACQUISITION 11. 12. 13. 14. 15. 16. Publication of preliminary notification and power of officers thereupon. Preliminary survey of land and power of officers to carry out survey. Payment for damage. Lapse of Social Impact Assessment Report. Rescission of preliminary notification. Hearing of objections. (ii) CLAUSES 17. 18. 19. 20. 21. 22. 23. 24. 25. 26. 27. 28. 29. Preparation of Rehabilitation...
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...Taylor Adams Dr. E. Montgomery BUS 508 Contemporary Business 02/14/2014 Mergers and Acquisitions When Proctor and Gamble acquired Gillette Products in 2005, Warren Buffet stated “This was a dream deal, this acquisition would create the greatest consumer products company in the world”. (Englishe, 2011) This is one reason why P&G chose to take on the major brand. Other than being known for their razors, Gillette’s products include Duracell batteries, Oral-B, and Braun. This acquisition meant Proctor and Gamble would take much control over the grocery market shelves. Control was everything to P&G at the time of this acquisition. P&G opened a huge door for Gillette, a door that looked inviting to shareholders. Gillette would now be invited into new markets such as China and Japan. China and Japan were two fast growing grocer markets. While this was a great end of the deal for Gillette, P&G would benefit greatly as well. Gillette housed products that were selling and evolving in the market faster than the brand itself. These were the type of acquisitions P&G needed to remain at the top of the product chain, and open the eyes of its competitors. (Englishe, 2011) Proctor and Gamble, the “signed partnership agreement” that formed in 1837 between William Proctor and James Gamble, was making money from the very beginning of its existence. Gamble, began in the large business venture as William Proctor’s protégé, in already existing soap and candle factory...
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...------------------------------------------------- Multinational ------------------------------------------------- Acquisition Presented by Professor: Course: ACC 401 Advanced Accounting Date: This is a discussion of the recent acquisition by Google, Inc., a publically traded U.S. multinational corporation, of Motorola Mobility, another multinational corporation. We will briefly describe in general terms, the acquisition of Motorola by Google, including analyzing the accounting requirements for such acquisition, and the various accounting challenges in preparing the financial statements for the consolidation of the subsidiaries on the date of acquisition. Furthermore, the paper will evaluate the amount of goodwill or other intangible assets derived from the transaction, including providing an in-depth explanation as to whether financial value was created by such acquisition. Additionally, other special issues will be analyzed, including the implications of changes in ownership, insolvency, liquidation, the reorganization resulting from such acquisition, and identification of the key accounting areas of difference for the acquisition reporting material to the profitability of the combined entity. Overall, this paper will conclude that Google’s acquisition of Motorola was significantly positive in terms of value within the wireless carrier market, and in terms of global goodwill. As reported by the Wall Street Journal, on August 16, 2011, the multinational...
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...Trident University Module 5- SLP FIN501 Dr. Glenn Tenney Jeremy Stack Net present Value, Mergers and acquisitions When brainstorming on the possible ideas of mergers or acquisitions it was easy at first to automatically think similar corporations within the same market either small or big or even in direct competition. Upon researching and reviewing the required readings I realized there are numerous types of mergers and acquisitions that could and should be considered in the terms of better business for my company (Target), for the market, and for the consumers in general. The Target Corporation is an American retailing company. It is the second largest discount retailer behind Walmart. With that being said it would at first be a natural thought maybe to think of a merger with Walmart, but as Target being second to them it wouldn’t necessarily be a merger as it would be an acquisition by Walmart and probably wouldn’t make the most business sense even if both were allowed to remain as separate entities. Beyond that certain regulatory bodies would probably find a merger or acquisition to constitute a monopoly and threaten competition within the respective industry. So what would be a company worth merging with or acquiring? One such company that comes to mind which I believe would be considered a Horizontal merger would be the Kmart Corporation as they are in direct competition. Kmart is listed as the 3rd largest discount retail chain behind Walmart and Target...
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...MN 3301 Midterm 1. Briefly describe the purpose of the Pre-System Acquisition and Systems Acquisition phases of the Defense Acquisition Management System. Explain the entrance and exit criteria for each of the phases of the Defense Acquisition Management System. Additionally, discuss the relevant Technology Readiness Levels associated with each phase. The Defense Acquisition System is a management process which the Department of Defense (DoD) can provide effective, affordable, and timely systems to users. DoD 50000.01 The three core elements, pre-system acquisition, system acquisition, and sustainment, consist of five phases, milestones and reviews acquisition programs must advance through. The five phases of the Defense Acquisition Management System are Material Solution Analysis (MSA), Technology Development (TD), Engineering & Manufacturing Development (EMD), Production & Deployment (P&D), and Operations & Support (O&S). Prior to advancing into the next phase a program must pass a Milestone review, by the Milestone Decision Authority (MDA), to ensure it meets both Department of Defense (DoD) and federal relguations. The pre-system acquisition element consists of the MSA and TD phases. Prior to entering into the MSA phase a Material Development Decision (MDD) will be made for a program and an Initial Capabilities Document (ICD) must be issued. This helps to determine which acquisition phase it will enter based on user needs, technology...
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...------------------------------------------------- THE RIGHT TO FAIR COMPENSATION ANDTRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013 ------------------------------------------------- THE RIGHT TO FAIR COMPENSATION ANDTRANSPARENCY IN LAND ACQUISITION, REHABILITATION AND RESETTLEMENT ACT, 2013 An Overview An Overview Contents 1. Introduction 2. Background 3. Why a new and combined law? 4. Aims and objectives 5. Purpose 6. Salient Features of the New Law – Scope of the Bill – Definition of “Public Purpose‟ – Urgency Clause – Definition of “Affected Family‟ – Safeguarding Food Security – Minimum Compensation for Land – Minimum R&R Entitlements – Special Provisions for SC‟s/ST‟s – Enhanced Role for Panchayati Raj Insitutitions especially Gram Sabhas – Special Provisions for Farmers – Special Benefits for Tenants and Sharecroppers – Infrastructural Amenities under R&R – Compliance with Other Laws – Process Flow – Institutional Structure – Safeguards against indiscriminate acquisition – Timelines 7. Some other Key Features INTRODUCTION Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act, 2013 is a legislation that regulates land acquisition and provides laid down rules for granting compensation, rehabilitation and resettlement to the affected persons in India. The Act has provisions to provide fair compensation...
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...BOMBARDIER TRANSPORTATION AND THE ADTRANZ AQUISITION CASE ANALYSIS Prepared by: Samuel C. Anyanwu Date of Submission: February 17, 2015. Submitted to: Prof Dr. Kelly Thompson. Bombardier Inc. (BBD) had over the years built a well diversified and versatile business in order to reduce cyclical risk, ensure long term survival and redefine the company’s position on a global scale. The route taken to achieve this level of diversification was through strategic acquisition of key players in the industry that complimented BBD’s vast business ventures. BBD’s growth philosophy was to seek acquisitions that enabled the company to apply exiting competencies without focusing solely on financial gains but more on how acquired companies would complement and strengthen its existing businesses. BBD’s philosophy also centered around being patient to bring about seamless integration of acquired companies with the aim of eliminating waste and turning around underperforming assets through its application of effective and efficient management approaches. [ (BOMBARDIER & ADTRANZ AQUISITION CASE) ] BBDs kin approach to integration of acquired companies enabled greater combination potential as this approach brought about strong employee support because there was the belief that BBD would protect jobs and invest in new product lines. BBD’s approach to integration was seen in the acquiring of Adtranz despite the fact that the company agreed to a limited due diligence process for the deal...
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... World’s 3rd largest Cement Producer and Trader from Mexico Global growth through IT innovations and aggressive aquisition strategy “Wouldn't it be great to strike back in Spain and take control of its cement sector five hundred years after the Spaniards conquered Mexico?” Lorenzo Zambrano CEO of CEMEX, 1992 CEMEX aquired the two largest Spanish cement producers Hiring “High Potential People“ In reality young and inexperienced people willing to work insane hours to achieve financial goals Cost reduction by 30% 1997 The most admired company in Spain, Actualidad Economica Case study in transforming low tech enterprise into a model of info age efficiency Streamlining Management Reducing peak hour Energy Use Introducing alternative Fuels Automation of all Plants Reduction of Inventory levels 1989 Anti Dumping Duty imposed by International Trade Commision, 58% on all Mexican cement imports Acquisition Institutionalize acquisition process, refine post-aquisition integration strategy Innovation 1988 CEMEXNet first Mexican Company to own its own satelite communications network Today Links all global operations Detailed live access to financial data, truck routs, operational data from all individual plants 2003 Wired Magazine 5th Masters of innovation, technology, and strategic vision CEMEX overcame this burden by importing cement in to the United States from third parties from other nations than Mexico CEMEX sends post-merger integration...
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...company’s long run profitability? * Sherden- 20-80-30 rule : Top 20% of customer generate 80% value of profitability , we may lose half of them serving the 30% bottom. Facts : * The major source of revenue for Conroy is the sales of MDX AND Tl , leading with the total gross life time profit of ($702,026 +$797,729 = $1499755) , which is more than all others even if we look at the sum profitability as well ($185,040 + $155,821 + $366,547 + $215,470 = $ 922878) * Margin in these two cars is high if we compare it with CSX , RSX , TSX * Volume of these cars is high in comparison to the premium RL . * Spending on these two cars , in order to increase our over all profitability is striking more * Spent on retention and aquisition of customer is equal in all segment cars . On the basis of above facts, the following assumptions, stratergy and projections are formed Assumptions: * Since the number of cars sold in MDX and TL is more than the highly premium RL .we assume that if we increase our marketing effort on it there is a scope of increasing sales in it . * If we curtail our expense on the retention of CSX , RSX and TSX fron $ 10 to $ 5 that will not harm much the retention rate .As spending equally in all segments for the retention rate is not a good option * Also if we spend more on the acquisition of premium segment of cars , we will be able to attract more customers * Providing economy to the customer in lower segment cars,will be a...
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...Mintzberg - Concept of Strategy - introductory chapter - Week 1. Author wants a set of working definitions for planning and strategy - Last sentence before 'Why Plan?' - p11 - Last paragraph - p27 - define planning/planners So now we have a more operational definition of planning, since the word can be identified with two observable phenomena in organisations - the use of formalized procedure and the existance of articulated result, specifically concerning the integrated system of decisions. - p14 PLANNING 1) Planning is future thinking. 2) Planning is controlling the future. 3) Planning is decision making. 4) Planning is integrated decision making. 5) Planning is a formailized procedure to produce an articulated result, in the form of an integrated system of decision. (-authur not think this is too restrictive. This is his main def of planning.) Can be seen as the preferred way of doing strategy or managment or decision making but not as them. - through de-composition, articulation and rationalization. - p15 WHY PLAN? -why formalize? 1)Organizations must plan to coordinate their activities. 2)to ensure that the future is taken into account. - "The first readon to look into the future in a systematic away is to understand the future implications of present decisions" and "..the present implications of future events." (Loasby, 1967:301) The future can be taken into account in 3 ways(Starr, 1971,315) a)preparing...
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...Team 7 Atlantic Computer2011. december 16. Atlantic Computer Case Study Group 7 Olivér Szabó Péter Hrobár Written by János Wicha 1 Team 7 Atlantic Computer2011. december 16. Recommendation: Use the value-in-use pricing method. 2. Recommended sales price for server: 5.500 USD/Unit 3. Recommended charge for PESA Harware as a Service (HaaS): 280 USD/month for 3 years contract. 4. For sales force new motivation package, 10% commission from every sold server and 5% from monthly fee/ month. 1. Problem statement: Jason Jowers has to develop a pricing strategy for the new Tronn server and the PESA software before the SME trade show. Server Market Overview: ● ● ● High Performance Servers ○ For Complex Applications ○ Next year marker potential 200.000 units ○ 3%/year Growth possibilities. ○ Atlantic Computer has a 20% market share. Basic servers ○ For single task, without the need of high computing performance ○ Next year market potential 50.000 units ○ Growth potential 36% till 2003 Competitor ○ Ontario Computer Inc. ZINK server is a main brand in the low end market On-line sales Low prices Company Overview: Atlantic Computer is a producer of High Performing Servers Jason Jowers joined AC four months ago and his main task is to develop the pricing strategy of the new Tronn Server with PESA support. Tronn is developed for low end market. PESA (Performance Enhancer Server Accelerator) is a software tool that was developed to allow Tronn to perform 4 times...
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...EBITDA was $789.80 million. This situation affords the company many attractive options such as pursuing acquisitions without incurring much debt or rewarding shareholders through dividends or the repurchase of common shares, which would make future earnings more valuable. Despite this reduction in net debt, the company's total debt as a percentage of total capital actually increased over the same twelve month period, while its cash on hand fell. In its last quarter total debt accounted for 29.53% of total capital compared to 9.61% in the year earlier quarter while cash on hand fell from $2.46 billion to $1.70 billion, a 30.77% drop. This suggests Starbucks Corporation has been using its cash reserves to pursue strategic purposes such as aquisitions or share repurshases rather than debt reduction, which isn't necessarily a bad option as long as such moves contribute to future growth instead of constraining the company's...
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