Mergers & Acquistions
Discuss the provided questions/topics using the textbook and additional research. Your answersmust include 3 sources plus Mergers, Acquisitions, and Corporate Restructurings (Wiley Corporate F&A) 7th Edition, 1 biblical integration, and be in APA format, a title page and abstract are not required.
Homework: History, Legal Framework, & Merger Strategy Assignment1. Discuss the Williams Act and the implications it places on mergers and acquisitions.2. Describe and discuss why the time period of a commencement offer is crucial in an offer.3. Discuss the implications of Wellman v. Dickinson in the U. S. District Court for mergersand acquisitions.4. Choose two of the U. S. State Corporation laws defined in your text. What implicationsdo these laws or legal principles create for the buyer and seller?5. Why are state antitakeover laws important? Who are these laws designed to protect?6. Discuss SEC Rule 10b-5. How does this rule protect shareholders who incur losses?7. The Sherman Antitrust Act of 1890 provides the foundation of antitrust law. Discuss atleast two of the other Acts that pertain to antitrust.8. Acquisition is a popular growth strategy, why?9. How does the synergistic effect influence mergers and acquisitions?10. Discuss diversification as it relates and drives corporate strategy.HOMEWORK: HOSTILE TAKEOVERS & LBOS ASSIGNMENT1. Why were hedge funds developed? What role do they play in the market today?2. What were some of the reasons for corporate deleveraging despite the low FederalReserve rates?3. What created the change in the activist acquisition targets?BUSI 536Page 2 of 34. Why is Jeff Smith known as one of the most aggressive activists? What was the result ofhis actions?5. What is the difference between a leveraged buyout and a going-private transaction?6. How have the trends in leveraged buyouts changed since their origination in the 1980’s?7. RJR Nabisco is ranked as one of the largest leveraged buyouts; discuss another recentleveraged buyout. How does this LBO differ from what happened at Nabisco?8. Discuss some of the potential conflicts of interest that take place in a managementbuyout.9. How does debt have a lower cost than equity? How does this impact the company’s taxposition?10. List at least two ways of financing a leveraged buyout. Which method would you chooseif you were brokering the LBO?Homework: Private Equity & Corporate Restructuring Assignment1. What is the difference between a spin-off, an equity carve-out and a divestiture?2. What caused the increase in divestitures during the 1970’s?3. Discuss two reasons for voluntary divestitures.4. Research and discuss a recent corporate divestiture. What were the causes for thisdivestiture?5. Describe the six step divestiture and spin-off process. Which step do you believe takesthe most time and effort?6. What wealth effects may be experienced as a result of divestiture announcement?7. Describe the tax consequences of a spin off.8. Define and discuss the differences between a liquidation and a reorganization.9. What are the advantages and disadvantages of Chapter 11 bankruptcy?BUSI 536Page 3 of 3Homework: Corporate Governance, Joint Ventures, Strategic Alliances, Valuation &Tax Assignment1. Why is a systematic valuation process important in the merger and acquisition process?2. Define and describe two of the methods of valuation that are commonly used.3. What is the discount rate and why is it important in the valuation process?4. When is it more appropriate to use a hurdle rate rather than a discount rate?5. How does a change in interest rates affect an acquisition price?6. What role does cash flow play in acquisition?7. How are P/E multiples used in valuation?8. What determines if an acquisition is taxable or tax-free?9. List and discuss at least three of the tax consequences of a stock-for-stock exchange.10. How do tax consequences influence the merger decision?Note: Your assignment will be checked for originality via the Turnitin plagiarism tool.
