The International Journal of Resource Management

Running head: CASE 3 MERGERS & ACQUISITIONS
Case 3: Mergers & Acquisitions
Name of the Student:
Name of the University:
Author Note

1CASE 3 MERGERS & ACQUISITIONS
Table of Contents
Answer to 1:...............................................................................................................................2
Answer to 2:...............................................................................................................................2
Answer to 3:...............................................................................................................................2
Answer to 4:...............................................................................................................................3
Answer to 5:...............................................................................................................................3
Answer to 6:...............................................................................................................................4
Answer to 7:...............................................................................................................................4
Answer to 8:...............................................................................................................................4
References:.................................................................................................................................5

2CASE 3 MERGERS & ACQUISITIONS
Answer to 1:
Particulars Value
Inventory 1,08,000
Accounts receivable 1,67,000
Net fixed assets 75,00,000
Retained earnings 1,22,000
Accounts payable -5,00,000
Notes payable -4,75,000
Long term debt -20,00,000
Total value of
acquisition 49,22,000
The total value of the acquisition is at the levels of $4,922,000.
Answer to 2:
Particulars Value
Number of shares 10,00,000
Total value of acquisition 78,97,000
Maximum price per share 7.90
The maximum share price that would be included for the organisation is at the levels
of $7.90.
Answer to 3:
Particulars Genie Aladdin Consolidated
Cash 80,00,000 -
Inventory 5,83,000 1,08,000 6,91,000
Accounts receivable 8,33,000 1,67,000 10,00,000
Net fixed assets 2,00,00,000 75,00,000 2,75,00,000
Retained earnings 2,75,000 4,22,000 6,97,000
Shares in Aladdin 77,50,000 77,50,000
Accounts payable -10,00,000 -10,00,000
Notes payable -34,17,000 -34,17,000
Long-term debt -1,00,00,000 -1,00,00,000
Equity 50,00,000 50,00,000