Essay M&A Written Coursework – Report Writing – Finance Assignment Help

Assignment Task:

Introduction 

This assignment gives you an opportunity to apply the knowledge and skills gained both in class and during self-study sessions to 

• analyse the market/sector 

• find the potential target company with high growth prospects or the one which is undervalued 

• carry out a preliminary valuation of the target by applying various techniques 

• summarize your findings, analysis and proposition in a structured report that can be presented to the top management for final decision. 

Please answer all the tasks in the same sequence as they appear in this assignment. Prepare your answers by using appropriate business writing and sticking to a good flow of logical arguments, concise structure, and relevant material. 

The completed assignment should provide evidence of the additional personal research as well as ability to analyse the business case from different but relevant perspectives. 

Take full ownership of the content and be prepared to substantiate, debate and defend your position. A submission made up of extracts from published sources and of pure descriptive nature (e.g. repeating the theory and making no conclusions) is not acceptable. 

Additional credit will be given for originality, creative thinking, well presented structure and proper referencing. 

Learning Outcomes: 

1. Differentiate between build and buy strategies 

2. Identify and critically analyse the relative importance of different types of drivers of M&A and Private Equity. 

3. Identify the main players/stakeholders in M&A transactions 

4. Understand the key milestones in the M&A process 

5. Critically evaluate the relative importance of the key elements in successful M&A and Private Equity transactions. 

6. Identify the methods of structuring a business acquisition. 

7. Define the price range of the target using different valuation techniques 

TASK 

You have recently joined an established Private Equity firm with a substantial amount of the committed funds. You have been asked to find a good company for the purchase and to prepare an Acquisition Report that summarizes your analysis, valuation and provides a conclusion on the investment. To prepare the Report you need to do the following: 

1. Identify a public target company with the annual revenues in the range from 250 Mio to 5 billion EUR

2. Provide a short analysis of the company and its market (industry sector, growth prospects, product value, spare capacity, quality of management etc)

3. List the major reasons for proposed acquisition. The reasons should be a logical inference from the analysis done in point #2 above

4. Choose 2 peer companies from the same/similar industry and compare them to the target company based on P/E and EV/EBITDA multiples

5. Pick up one precedent M&A transaction from the same sector and check the multiples at which deal was carried out

6. Perform DFC valuation of the target company (utilizing the DCF model from the class) as well as “multiples” valuation.

7. Finish the assignment by providing a short summary that will mention: 

a. Major reasons for acquisition

b. Proposed valuation range (based on DCF and multiples valuation)

c. Purchase structure (assets vs stock)

d. Proposed consideration (how you pay for the company)

e. Deadlines for completion