According to Financial Management, acquiring another firm in the same industry has variables with multi-faucet advantages and disadvantages, depending on the execution of the plan. “Businesses grow in one of…
Income Statement 1/1/2008 - 12/31/2008 | Revenue | | | $3,249,580.53 | | Direct Expenses | | | | Salaries & Wages | $487,437.08 | | | Vehicle Maintenance | $64,991.61 | | | Fuel | $20,449.80 | | |…
One of the first advantages of an IPO that a company will realize is an increase in…
Walter was not instructed and had no legal right to question Steve. Ultimately Steve was threatened by Walter and Steve could possibly file suit against Walter and the company. Walter has become a liability due to his inappropriate actions against Steve. Although Steve was spying on the company there should be another form of action in play to deal with that instead of the security guard interrogating him.…
One of the reasons as to why I believe merging is the better option is because of its many advantages. A business that has been merged will have most of its expenses reduced. Costs, especially for raw materials are very vital for a company, because they decide how much profit a company can earn. If the price for the raw materials increases anytime during the chain of distribution, the amount of profits a business earns decreases. “A larger company enjoys greater purchasing power, which lowers the costs of raw materials and other necessities. Merged companies can also share office space and eliminate duplicate manufacturing facilities.”(www.smallbusiness.chron.com) This is very useful because the businesses could sell their former facilities and regain money from what they had and it…
Going public through an Initial Public Offering, or IPO, could be a great way for Berry’s Bug Blasters to raise a substantial amount of cash very quickly. This infusion of cash, if managed properly, could help their company expand into other geographic regions or expand their service offerings. They could use this cash, which they would otherwise not have, to purchase the necessary equipment to improve their pest treatment services. For example, by investing in “greener” pest treatment chemicals, they may be able to tap a new market and have a broader appeal. Also, this cash infusion could help them accomplish their other idea of purchasing a company in the same industry, thereby growing their stock value even further.…
Referring to the hypothesis we predicted in the beginning of this experiment that under ideal conditions, we hypothesized that the results will eventually follow the Hardy-Weinberg expectations, which means the genotypes frequencies of the Drosophila melanogaster would remain constant; Therefore, no evolution had happened to the flies under the ideal conditions.…
Knowing these pros and cons will help the company decide whether or not it will be worth it to acquire these new assets. There are a few steps that need to be taken when considering this proposition. We must identify the interest. We must ensure that we make a list of the possible companies that we would like to buy. These companies should be able to make us a better company. We should consider the talents of both our company and the talents that we will be receiving with the new company (SBA.gov, 2014). Next the company should consider whether or not the new business acquisition has a condition that is unfavorable to us, for example location or the time commitment. There are many favorable aspects to buying an existing business such as drastic reduction in startup costs. You may be able to jump start your cash flow immediately because of existing inventory and receivables (Ennico, 2014). There are also some downsides to buying an existing business. Purchasing cost may be much higher than the cost of starting a new business because of the initial business concept, customer base, brand and other fundamental work that has already been done. Also, be aware of hidden problems associated with the business like debts the business is owed that you may not be able to collect (SBA.gov,…
Additionally, Bug Busters places customer service on top of their priorities, something that Ecolab values greatly. This joint venture options creates multiple benefits for Ecolab. Pursuing this option will help marginalize their seasonal revenues, a problem in which Ecolab has struggles to combat in recent years. Since the weather patterns in Egypt are more consistent, the pest populations do not vary according to the time of year as dramatically as in other areas. Additionally, the joint venture option allows Ecolab to enter the area with assistance in the areas of culture, trust, and the types of pests needed to be eliminated. After completing a thorough financial evaluation, it was found that the opportunity cost of capital is approximately 9.17%, assuming an initial investment of $10,000,000, Ecolab’s breakeven point would be a revenue of at least $917,000 a year. This allows for a payback period of roughly 10.97 years. Overall, taking all of the above into consideration, it is believed that this option would greatly benefit Ecolab, and align with their core principles…
In this case we analyst whether Timken should acquire Torrington company from Ingersoll-Rand by cash, issuing share to public or issuing share directly to IR. IR wanted to divest Torrington and Timken aim to acquire it. After merging with Torrington Timken will be world third largest company in bearing industry and Timken would gain more sales as Timken and Torrington has about 80% of overlapped customer. Moreover after the synergy they can reduces cost, increase market shares and have more production lines. As Timken leverage ratio is not good, so they couldn’t raise cash that needed to be paid for the acquiring because if they did so the investment-grade rating will be deceased. Timken rating now is BBB so they couldn’t risk it to go lower. As Timken stock price is 19$/share they would have to require a lot of shares for the public to gain enough money for the acquisition and there is a risk that Timken couldn’t sell all of shares. For the last option is by issuing share directly to IR would benefit Timken as it will change capital structure reduce debt more equity. But it wouldn’t happen either because this option will make IR take the risk for holding to Timken stocks while they already have plan to invest in other segment. Our group suggests that Timken should acquire Torrington by issuing share directly to IR and pay cash by doing this will cause a win-win situation.…
2. The two companies’ products are related and thus there would be easier management and operation since they could combine materials and resources and be able to choose which are the better suppliers bases on what the two companies currently have. Upon acquisition, they joint companies could now remove and retain what is better for them to have for better production. In relation to this, they would then be able to save costs maybe from production or others like taxes.…
Anybody who has written software for public use will probably have received at least one bad bug report. Reports that say nothing ("It doesn't work!"); reports that make no sense; reports that don't give enough information; reports that give wrong information. Reports of problems that turn out to be user error; reports of problems that turn out to be the fault of somebody else's program; reports of problems that turn out to be network failures.…
Zoëcon Corporation should commercialize the Strike Roach Ender brand by expanding distribution to the 19 cities market area in the Southeast United States. Followings are my justifications based on the decision factors in the case for the recommendation.Profit Potential. First of all, Strike Roach Ender products are packaged in two different ways which are 10-oz aerosol and 6-oz fogger and they account for 66% and 34% of total sales in test market respectively. From the first part of table 1, the weighted average unit price and contribution for the product are calculated as $3.02 and $1.66, which means that the expense $1,478,000. It seems that it is not wise to introduce the product into a larger market which covers 19 cities, but a forecast of the sales and profit of the 19 cities market is necessary. Table 2 shows the result of forecasting and the total contribution in the bigger market which is $5,149,320. Let us assume that the costs of up-front investment in market research, setup/auditing, and public relations campaign don’t have to be repeated in the expanded distribution, so the major cost will be the promotion and advertising. Assuming the expenditure is based on a per city approach, the total spending would be $4,064,000. Therefore, Zoëcon can get a profit of $1,085,320. Comparing the profit and marketing Roach Ender are less toxic, which means less harmful to human and animal comparing with other compounds typically used in household insecticides, and long-standing effect, which is due to the fact that it affects the reproductive cycle of an insect. The features of Strike Roach Ender perfectly meet what the consumer wants in the market. When the product is introduced to a larger market, there will be more potential consumers.…
All companies listed on the stock exchange have one common interest in mind – to raise funds. Initial Public Offerings is the company’s first time raising funds selling its stock to the public.…
We are immense grateful to our subject teacher MRS. SMITA V. KUMAR who has given us this opportunity to prepare this project and provided their invaluable guidance. We are also grateful to my company guide MR. RAJENDRA SHAH who has provided all the necessary information required to prepare this report.…