The following article provides information on Google\'s potential acquisition of
ID: 1185718 • Letter: T
Question
The following article provides information on Google's potential acquisition of Groupon:
Lachapelle, T. (2012). Buying groupon hard for anyone as growth slows: real m&a. Retrieved December, 2012 fromhttp://www.bloomberg.com/news/2012-12-11/buying-groupon-hard-for-anyone-as-growth-slows-real-m-a.html?link=mktw
But do not limit yourself to this article.Use Proquest, EbscoWeb, and other sources in the Cyberlibrary.Use various internet search engines suchas news.google.com for the latest news on this acquisition. Then write a five to seven pages report for the shareholders of Google and Groupon by answering the following questions and the questions in part I:
1) Do you think Google's potential acquistion of Groupon would add value to the shareholders of both corporations? Why or why not?
2) Based on your analysis and findings (Part I and Part II), what would you recommend to the shareholders of Google and Groupon? Please explain your reasoning.
The main focus of this assignment will be answering the questions above and the questions in part I.
In your answers to the primary questions in part II, please respond to following issues:
?The impact on Google shareholders
?The impact on Groupon shareholders
?The financial conditions of both corporations (do not forget to consider the new project proposed by Google in part I)
?Why might one combined Google/Groupon company be more profitable than if they remained separate companies? In general, what makes an acquisition successful?
?Potential pitfalls - might the combined entity actually be less profitable than either company operating independently? What are the risk factors with this potential acquisition?
In addition to making use of concepts from the background materials for this module, feel free to use concepts from Modules 1-4 as well.
3) What do you perceive you have learned in the Module 5 Case Assignment? Which of the following learning objectives do you feel you have mastered?
?Describe and apply net present value (NPV) method to make capital budgeting decisions
?Identify success factors in mergers and acquisitions
?Explain and discuss financing options for financing mergers and acquisitions
?Apply principles of risk and valuation analysis to mergers and acquisitions
Explanation / Answer
1.One of financial goals of the financial managers is to maximize the shareholders
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