The coursework will require the student to analyse a case study of an actual acquisition (over the last 5 years) the case study is about accompany which is lenovo takeover ibm. The analysis should cover key aspects such as strategic justification, regulatory requirements, target valuation, financing arrangements, the defence tactics adopted by the target and an evaluation of risk.
The task is as follows:
Take one of the merger / takeover situations that have been given prominence recently in the media. Analyse your selected case under the following headings:
1. Strategy - how does the target company appear to fit into the acquirer's long-term strategy?
2. Regulatory - were there any regulatory implications?
3. Valuation - how have the company valuations been justified?
4. Financing - how is the acquisition to be financed?
5. Defence tactics - were the tactics employed sensible ones? Were the managers of the target company genuinely resisting or simply seeking to squeeze out a higher offer?
6. Implementation - will the acquired company be difficult to integrate? Are any sell-offs likely?
7. Risk - given that the majority of takeovers destroy shareholder value, what are the major risks?
Throughout your analysis you should critically evaluate the relevant theory against the events surrounding the takeover. Your report should be no more than 2,500 words long excluding any tables of figures, bibliography or appendices. You will be penalised for exceeding this word count.
Further guidance on completion of the coursework will be given during the first weeks of the module. Please note that the choice of actual merger to be used in the case study must be approved by the lecturer.
Your answer should be appropriately formatted. This is an individual piece of work and all information must be appropriately sourced and referenced using the Harvard referencing system.
Please use double line spacing and font size no less than 12. Please display the word count (not including the bibliography or appendices) at the front.
Assessment Criteria:
You will be assessed on:
• Structure and presentation
• Ability to identify and critically evaluate the relevant theory
• Research into a recent merger or acquisition
• Critical discussion and analysis of the implications for theory of your research
• Ability to draw conclusions, identifying the key issues