- 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 - 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
