We're Open
+44 7340 9595 39
+44 20 3239 6980

evaluate an acquisition

  100% Pass and No Plagiarism Guaranteed

evaluate an acquisition

This paper requires you to evaluate an acquisition. You are required to explain the business of the companies and provide the total purchase price showing how it is calculated. Calculate the IRR for the acquisition assuming a 10, 20, and 30 year horizon, Ace’s reasons for the acquisition your advice Ace to acquire Chubb. You are supposed to answer all the questions mentioned below clearly.  

Finance 533

Spring, 2016

Merger & Acquisition 1

 

The purpose of this assignment is to evaluate an acquisition.  On July 1, 2015, Ace Ltd. agreed to acquire Chubb.  Additional information can be found on Yahoo Finance and CSIMarket.com.  The assignment is to analyze the acquisition and discuss the following questions.

 

In your own words, what is the business of each company?

What is the total purchase price?  How is this calculated?

What is the PE multiple for the acquisition using 2014 earnings?

How will Ace finance the acquisition?

Is this a horizontal, vertical, or diversifying acquisition for Ace?

Explain your reasons.

Calculate the IRR for the acquisition assuming a 10, 20, and 30 year horizon.  Use 2015 as CF0.

Calculate the value of the company using the EBITDA approach from the December, 2014 financial statements and the sources given below.

Calculate the enterprise value from the sources given below.

Show the results of these 3 questions in a spreadsheet.

Using these results is the purchase price of Chubb high, low, or reasonable?  Why?

What are Ace’s reasons for the acquisition?

What are Chubb’s reasons to agree to the acquisition?

Would you advise Ace to acquire Chubb?  Why or why not?

Do you think the acquisition will be profitable for Ace?  Why or why not?

 

 


100% Plagiarism Free & Custom Written,
Tailored to your instructions


International House, 12 Constance Street, London, United Kingdom,
E16 2DQ

UK Registered Company # 11483120


100% Pass Guarantee

STILL NOT CONVINCED?

View our samples written by our professional writers to let you comprehend how your work is going to look like. We have categorised this into 3 categories with a few different subject domains

View Our Samples

We offer a £ 2999

If your assignment is plagiarised, we will give you £ 2999 in compensation

Recent Updates

Details

  • Title: evaluate an acquisition
  • Price: £ 99
  • Post Date: 2020-04-29T09:26:19+00:00
  • Category: Assignment Queries
  • No Plagiarism Guarantee
  • 100% Custom Written

Customer Reviews

evaluate an acquisition evaluate an acquisition
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

The writer 0223 is really helpful. He gave me the best essay ever. Love you loads for such a great job and thanks again.
Reviews: 5

A masterpiece of assignment by , written on 2020-03-12

This is my second order which I booked recently at Insta Research. I just got my coursework completed expertly. Just waiting for good scores now.