Project:
• use Bloomberg, Valueline, Morningstar, Mergent or any on-line source for data.
M&A project for Energy Transfer Partners & Sunoco:
1. Both firms are/were publicly held (listed on a stock exchange)
Research both firms:
1. Provide a detailed description of the firms
2. Describe their primary activities and markets
3. Provide a three year ratio analysis with the financial statement - balance sheets, income statement, cash flow-three years before the M&A and three years after the M&A using at least 16 key ratios found in any textbook or in the following link:
16 Financial Ratios for Analyzing a Company's Strengths and Weaknesses by Joe Lan, CFA
https://www.aaii.com/journal/article/16-financial-ratios-for-analyzing-a-companys-strengths-and-weaknesses.touch
4. Calculate the DuPont Relationship for each firm for each year: ROE = NPM * TAT * EM
Identify Synergies
5. Summarize at least five articles describing the benefits and drawbacks of the M&A.
Provide links or actual articles, Discuss and describe at least 3 benefits and 3 criticisms of the M&A, Discuss by clearly describing the synergies expected and how to measure them
Evaluate Price - all from the articles -
6. Use two of the approaches in the textbook - Merger, Acquisitions, and other restructuring activities- seventh edition by Donald M. Depamphilis to evaluate the value of the target
7- Discuss and compare your evaluation to the actual price paid
8- Discuss whether the Acquirer paid full price, over-price, under-price
9- Discuss and describe the post-merger performance of the firm using the same ratios
10- Discuss and describe the post-merger performance of the combined firm's stock price
11- Discuss and describe the measures used to evaluate achievement of synergies
Business Finance On-line - use for your analysis of the two firms provides functions and calculations for:
•Short-term Solvency, Debt Management, Asset Management, Profitability, Market Values
https://www.zenwealth.com/businessfinanceonline/RA/RatioAnalysis.html
•Demonstrating Value - provides insights into social responsible and sustainable firms
https://www.demonstratingvalue.org/resources/financial-ratio-analysis
•My Accounting Course - provides extensive listing, explanation and calculation of ratios
https://www.myaccountingcourse.com/financial-ratios/
•Accounting Coach - Good Introduction
https://www.accountingcoach.com/financial-ratios/explanation
Important notice :
All the project analysis make it in word file no less than 10 pages and provide all the financial statement and article or any related stuff in separate file as a documents to support what is written in the project analysis.