DOES M&A ACTIVITY ADD VALUE? A LITERATURE REVIEW AND CASE STUDY Abstract In this paper we explore the motivations for corporate acquisitions and critically evaluate whether acquisitions add to shareholder wealth – both from an acquirer and target perspective. We find that the time period over which shareholder wealth is measured‚ the payment form and the nature of the bid all have an effect on the findings. A case study of the ABN AMRO acquisition by RBS is examined to validate the findings from
Premium Mergers and acquisitions Corporate finance Stock
Wesco Distribution‚ Inc. Case Questions. 1. WESCO is a classic intermediary in the channel and must add value for both suppliers and customers to maintain this intermediary position (i.e.‚ otherwise the suppliers might be tempted to “dis-intermediate” WESCO and go direct). a. How does WESCO add value for its suppliers? Why would a supplier want to use WESCO instead of going direct by employing its own sales force? b. How does WESCO add value for its customers? Why would
Premium Sales Customer service Customer
1. What is your action plan? Do you recommend that WESCO be proactive in Managing its NA program or would you prefer that WESCO adopt a passive approach? Action Plan: WESCO should definitely adopt a proactive approach in managing its NA program. A proactive approach in managing the NA program would definitely fulfill the company’s visions of becoming a $ 3 billion company with an average EBIT of over 5% by the year 2000 (from its 1996 figures of $ 2.2 billion company with an EBIT of around
Premium Sales
Value added refers to "extra" feature(s) of an item of interest (product‚ service‚ person etc.) that go beyond the standard expectations and provide something "more" while adding little or nothing to its cost.[citation needed] Value-added features give competitive edges to companies with otherwise more expensive products. | | | | Value-added is used in several ways to indicate an enhancement to a product or an entity. By one definition‚ value-added is the difference between the cost of
Premium Value added
Harvard Business School 9-598-021 Rev. February 9‚ 1998. WESCO Distribution‚ Inc. Late in June 1997‚ Jim Piraino‚ VP marketing for WESCO Distribution‚ Inc. (see Exhibit 1)‚ was preparing for a yearly review meeting with his CEO Roy Haley. At the top of the agenda was the performance of the National Accounts (NA) program during the first half of 1997 (see Exhibit 2). Haley had ambitious plans for WESCO over the next five years. He had charted out a course that called for an annual growth rate
Premium Management Strategic management Marketing
12 Angry Men After watching 12 Angry Men‚ I realized that I also have a few characteristics that some of the cast members struggled with during the movie. Such as juror #3 (son problems). As I was watching the film I noticed that juror #3 was bringing his personal issues that involved his son into his decision making. By him doing this it clouded his judgment‚ and he wasn’t able to assess the situation properly. Instead he let his emotions get the best of him. There were curtain things he
Premium Critical thinking Emotion Man
HOW MANAGERIAL ACCOUNTING ADDS VALUE TO ORGANIZATION 1. INTRODUCTION Management accounting provides accounting and related information to support the management of an organization in its internal decision-making. It includes product costing‚ relevant costing‚ cost-volume-profit analysis‚ capital budgeting‚ and operational‚ tactical‚ and strategic planning. A major activity included in the management accounting is the measurement of costs of processes that create value. Management accounting is
Premium Management accounting Strategic management Management
HARVARD CASES Case 14 WESCO Distribution‚ Inc. Synopsis In June 1997‚ Jim Piraino‚ VP of marketing for WESCO Distribution‚ Inc.‚ is preparing for a yearly review meeting with WESCO CEO Roy Haley. Haley wants the firm to reach annual growth goals of 6% to 8% in revenues and 12% to 16% in profitability over the next five years. The centerpiece of this growth strategy is the National Accounts program‚ which WESCO has developed to serve its major industrial customers in response to recent
Premium Marketing Customer service Procurement
has been difficult until most recently when I was diagnosed with Attention Deficit Disorder (ADD). Therefore‚ my academic record and test scores do not reflect my true ability and potential. A partial reason for this shortcoming is because of the fact that I went through most of high school with undiagnosed Attention Deficit Disorder (ADD). Since my diagnosis‚ my ability to focus on my academic needs and to apply myself has improved greatly. Although I have been diagnosed and properly treated now
Premium Psychology Education High school
How IT can add value to a company directly and indirectly. Information technology can add value to a company either directly or indirectly. Reducing the cost associated with a given products/services. Cost reduction could happen anywhere within acquisition of raw materials to delivery of final product/services. Cost reduction occurs in different forms‚ it usually occurs when IT allows the same activity or set of activities to be performed more efficiently (Diann‚ n.d.). IT may either reduce
Premium Firm Customer