Acquisition of a company (just task no1)
Mergers and Acquisition
Level 7
2019/20
Coursework 1 60%
Coursework 2 40%
Module Codes: 7AC502
Module Leader: Clement Arthur
This assessment will assess the following learning outcomes:
Coursework 1
1. Critically evaluate and analyse potential mergers and acquisitions from a strategic financial perspective
3. Critically analyse the results of merger activity, and be able to make recommendations for a way forward in light of company objectives
Coursework 2
2. Critically reflect on the management processes involved from the perspectives of all organisations
Submission date: Report April 22nd , Presentation April 30th
Assessment Requirements
You are financial analysts in a corporate finance firm that has been given the task of creating a shortlist of two acquisition targets and presenting your analysis with reference to relevant theory and research and make final recommendations to your client.
The client company and the acquisition targets are to be of your choosing, but the client company must be UK based and listed on the stock exchange (it is also sensible to avoid financial services firms due to the complexity of their accounts). The two shortlisted target companies do not have to be UK based. You must be able to access several years financial statements of all companies to do a full analysis.
Coursework 1: 60% Group report
As part of your evaluation of the potential acquisition targets each group is required to write a report. You are required to work in groups of minimum 3 people and maximum 4 people.
Word limit is 3,000 words (a plus or minus 10% leeway is permitted any greater than this leeway and a 5% grade penalty will be imposed).
The group report is required to include the following:
(i) A brief analysis of your client and the two chosen shortlisted companies and their industries or markets. You must critically evaluate and justify the choice of each target company.
(ii) Recommend, with reasons, an offer price for each shortlisted target company.
· Each offer calculation should include the use of a range of suitable, justifiable, and verifiable valuation techniques. Include a rationale for your choice of discount rate.
· Your answer should also state any assumptions you have made.
(iii) Using the data you have on your chosen companies, discuss and recommend how the acquisition could be financed. Your answer must justify your chosen method of financing the acquisition and demonstrate that you have considered affordability and risk.
(iv) Make your final recommendation of which target company should be acquired and why. Refer to short and long-term strategy and non-financial matters, not just financial information.
(Only enclose copies of relevant reference material when you submit your report)
Coursework 2: 40% weighting you will be graded for your individual input.
You are required to present your group report as a group. Please be aware that even though you will be graded individually, you should work as a team to make sure the presentation flows and covers the relevant and important aspects of your report, ensuring you reflect on the group report as appropriate and the perspectives of each organisation. In doing so you will ensure that you do not duplicate content and that each individuals presentation input is relevant, timely and demonstrates an understanding of the full report.
The presentation is to last no more than 20 minutes and will be followed by a short (5-10) minutes question and answer session.
Assignment grade breakdown:
Coursework 1 60% weighting This will be a group grade.
Coursework 2 40% weighting You will be graded for your individual input.
Grading guidelines
Your presentation will be assessed according to the following criteria:
Grade
Knowledge and use of relevant concepts
Amount and quality of research, and data, evident in the paper
Presentation and attention to detail
70% +
In depth; relevant; intelligently used. A thorough reflection of the contents of the full report
Significant; wide ranging; evidence is very supportive of the arguments presented
Skilfully presented; good attention to detail; highly professional
60 69%
Good; relevant; some limitations in how concepts were used and reflected upon
Comprehensive; evidence is supportive of arguments being presented
Skilfully presented; good attention to detail; professional
50 59%
Adequate; appropriate; some weaknesses in understanding of concepts;
Adequate; provides some evidence to support the arguments presented
As above, but with some specific weaknesses evident
40-49%
Weak; many errors in how concepts were used
Poor; limited evidence to support arguments
Poorly presented and communicated; some mistakes arising from a lack of attention to detail
30-39%
Misunderstood many of the concepts used
Poor; minimal amount of evidence to support arguments
Communication and presentation is of a very low standard throughout, as is the attention to detail
Fail (<30%) Significant failure to understand and/or use relevant concepts Poor; negligible evidence provided. As above, but with some serious concerns about the way this work has been communicated and presented. Mark sheet for the presentation STUDENT NAMES: Criteria Student 1 Student 2 Student 3 Comments 1. Introduction: Structure and organisation, clearly defined, easy for audience to follow 2. Content: Structured, logical, justified, accurate, complete, range of techniques and sources, interesting, relevant reflection 3. Visual aids: Clear, attractive, relevant 4. Audience relationship: Eye contact with everyone in the audience, unobtrusive use of notes, concern for listener, rapport, non-verbal communication (posture, gesture, facial expression) 5. Voice and expression: Fluent, audible, conviction, pace, appropriateness of language, enthusiasm 6. Timing: Too long/short, division of time 7. Interest value: ability to maintain interest 8. Critical evaluation of target and financing options 9. Recommendations and conclusions: practical, original, well reasoned and referenced Assessment criteria Moderation of grades awarded for both elements of the assignment will not occur until the entire portfolio is submitted. These grades must be regarded as provisional until they are internally and externally moderated. Sensitivity: Internal
