Company Analysis

  1. In the first part, you are asked to analyze the IPO deals assigned to you randomly, and
    fill in the related properties of these deals. This part will have 30% weight in your total
    homework score. You can find below a sample table that you are asked to fill in.
    Your assignments are attached in the file named “ipo-deals.xlsx”
    Company
    Name
    Sector Deal
    Size ($ /
    Euro)
    Underwriter Date of
    the IPO
    IPO
    Price
    Current
    Price
    France
    Telecom
    Telecommunication $ 7.3
    Billion
    Merrill
    Lynch
    Oct. 6,
    1997
    187
    francs ~
    $32
    10.48 Eur
    ~ $12.65
  2. In the second part, you are given the company list of S&P 500 and BIST stock indexes in
    “index_list.xlsx”. These lists are provided to you as a sample, but you are not restricted
    with these two indexes, or with any index. You can recommend any other company that
    is listed/not listed on any stock exchange.
    For this part of the homework, you are asked to propose a merger of two companies, or an
    acquisition of one company by any other company, considering the benefit it may provide to
    any of these companies, and/or the synergy that may come up after the acquisition.
    You are supposed to fill the following table regarding your proposition:
    Parent Company Target Company
    Type of the
    deal Rationale
    for the
    deal Possible
    Name Sector Definition Mcap Name Sector Definition Mcap Synergies
    Merger /
    Aquisition
    “Achieving synergies is the fundamental rationale for M&As, and it is generally believed that a
    combination of businesses will create value only if the value of synergies is positive. IBs have
    become more involved in the kinds of detailed, bottom-up estimations of synergies that are
    needed to produce a successful transaction. There are synergies when the value and
    performance of the merged entity are more than the sum of the two original entities taken
    separately.
    Synergies can be either revenue or cost synergies, as illustrated by two simple equations:
    • 2 + 2 = 5. On the revenue side, the goal of the transaction is to cross-sell the products
    and services of one company to the customers of the other or to develop and sell more
    products and services or both.
    • 2 + 2 =3. On the cost side, the combination of two firms permits the reduction of
    operating costs and expenditures.”
    https://www.investopedia.com/terms/s/synergy.asp
    There can be several reasons for generating an m&a deal as the most general ones are listed
    below.
    https://investmentbank.com/buy-side-target-list/

Sample Solution

ACED ESSAYS