Using the company selected for the assignments, determine two growth strategies for the selected company (one strategy shows organic growth, the other shows merger or acquisition).
Prepare financial projections using eVal or Prof. Stevens' Financial Forecasting Model for the two growth strategies. The projections need to show the results of company operations following implementation of each strategy.
Then, a written analysis and recommendation for the growth strategy that is recommended for the selected company and defend the recommendation.
The assumptions used in No. 1 and No. 2 below must be summarized using one of the sample tables provided below. The Excel file with the assumptions also must be submitted with the assignment.
The analysis needs to include:
1. Explanation and Analysis of Assumptions and Results of the Projections for Organic Growth Strategy - Explain the assumptions that are used in the projections. Discuss the results of the organic growth strategy along with its strengths and weaknesses. These data must be summarized in the table format provided below, which must be included and then discussed in the written analysis.
2. Explanation and Analysis of Assumptions and Results of the Projections for Merger or Acquisition Growth Strategy - Explain how the balance sheets and income statements were combined and some initial observations about the financial statements of the combined company. Explain the assumptions that are used in the projections. Discuss the results of the merger/acquisition growth strategy along with its strengths and weaknesses. These data must be summarized in the table format provided below and then discussed in the written analysis.
3. Examination and Discussion of Comparison of Results of the Growth Strategies - Compare and discuss the two growth strategies. This analysis should include an examination of the comparative strengths and weaknesses of the strategies. This analysis must include data that compare a number of indicators of performance (e.g., ratios, revenues, costs, profitability, growth, etc.)
These data must be presented in a table showing a comparison of the results of the two forecasts. The data in the tables are then to be discussed in the written analysis. Preparing a table comparing the resulting ratios is a good method to make the comparisons.
4. Recommendation and Justification of Most Appropriate Growth Strategy - Recommend and justify which growth strategy is most appropriate for the company.
Writing Instructions
The discussion portion of the analysis should be three to five pages in length, , and should employ APA style and format for reference citations. Supporting data (e.g., figures, tables, etc.) and references should be submitted limited to four separate attachments in an appendix after the written portion of the paper.
The paper should begin with a short introduction and then proceed to examine the four topics outlined in the previous section.
The subheadings used in the paper must be:
1. Introduction
2. Explanation and Analysis of Assumptions and Results of eVal Projections for Organic Growth Strategy
3. Explanation and Analysis of Assumptions and Results of eVal Projections for Merger or Acquisition Growth Strategy
4. Examination and Discussion of Comparison of Results of the Growth Strategies
5. Recommendation and Justification of Most Appropriate Growth Strategy