Financial Analysis and Management – Assignment
Question:
1. You work as a financial analyst for a firm of international management consultants. The firm has been approached by a multinational client who is considering diversifying.
Write a brief internal management memo that summarizes the current businesses of these two potential acquisition targets companies, together with an evaluation of the future prospects.
2. Undertake the necessary research and write a report to the client, which critically evaluates and compares the financial performance and risk exposures of these two companies, together with a reasoned argument as to your advice as to which company – if either – might be the preferred acquisition target.
3. The client is particularly concerned with two aspects of the financial management of these companies: the management of working capital and the capital structure. Write a report which critically analyses both companies in these two respects and suggest how and why improvements might be made.
Presentation:
• A consultant’s report should be clearly and logically structured in whatever format appears to be most suitable for supporting the analysis, arguments, conclusions and recommendations. Place ratio calculations in an appendix and only present the actual ratios in the body of the report.
• An internal management memo may be written in a “bullet point” format, if required.
• Tables, graphs and charts are a convenient way of organizing your findings and helping you to analyze data. They also make it easier for the marker (and the client) to understand your findings and so you are recommended to use visual aids effectively but not excessively.
Word Limit:
• Brief summary of the acquisition targets and the future prospects
• Comparative evaluation of the financial performance and risk exposures of the two companies, and acquisition advice (2000 words)
• Importance of working capital and capital structure management
• Analysis of working capital management
• Analysis of capital structure
• Possible improvements