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Merger & Acquisition Assignment

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Added on  2020-10-22

Merger & Acquisition Assignment

   Added on 2020-10-22

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SAY LOGIDIS(MAURITIUS) LTD ISFOR SALE
Merger & Acquisition Assignment_1
EXECUTIVE SUMMARYTo the Investors Say Logidis is a Warehousing & Transport Company which offer all activities related toLogistic Trading such as redesigning & restructuring warehouse and distribution of goods atIslands. Company is also making investment in equipments related to Information Technology. Logidis is including many services in its portfolio as services provided by company isattracting customers and company is also delivering to corporate customers which in turn helpscompany in enhancing its profitability & market share. Further, firm is also made expansion inits business operations by adding transport services in its business. Logidis Transport Services isproviding facilities related to transport. Moreover, this business Group is also entering in tobusiness of Hotel Industry. All the departments & subsidiary of Logidis are profitable andcustomers are highly satisfied with products & services offered by company.Merger is a method of restructuring in which two more companies come together andtake a decision of combining their business so that they can reduces competition in market andachieve more profits. There are various types of merger such as Conglomerate Merger,Horizontal Merger and Vertical Merger.Say Logidis is a Mauritius based company and now company is thinking to sale itsbusiness to any other company by entering in to a Merger. Merger & Acquisition is an activitythrough corporates are able to buy & sell their business to other company. Companies grow theirbusiness organically & inorganically, merger is an activity through which an organisation is ableto grow its business in inorganic manner. Companies enter in to Merger & Acquisition Activitieswith an objective of making expansion & diversification in their business offerings. Say Logidisis also wanted to expand its business offering & market share that's the reason company isthinking to enter into a merger contract. Further, in a merger two or more companies combinetogether and having control on business operations equally or in a proportion mutually decidedby them. Say Logidis wants to enter in to a one sided merger where whole shares and control ofcompany is to be taken by other company. Merger is also beneficial for purchasing company as abusiness firm is required to pay less cost & has to invest less money if it purchases an existingbusiness. Whereas, if a company establishes a whole new undertaking than there is a requirement
Merger & Acquisition Assignment_2
of huge cost and it also requires more time to in developing business ideas & formulatingbusiness strategies. Thus, it is beneficial for a purchasing company to enter in to a mergercontract. Merger also benefits purchasing company by providing Inorganic Growth. Market Share, Customer Base and Brand Image of a purchasing company gets maximisedif it enters in a merger with another company. Any company can purchase business of SayLogidis by paying consideration to company. This consideration can be made either in cash, byissue of shares and by calculating assets & liabilities of Say Logidis. Financial Information of Say LogidisFor the year ended 2018ParticularsAmountDebtors7780260Current Assets1845878Current Liabilities14952871Net Profit2382872Sales37074403Gross Profit10650292Capital Employed44122960Key Financial Ratios of Say LogidisFor the year ended 2018ParticularsAmountLiquidity RatioCurrent Ratio0.1234463937Profitability RatioEarning before Interest & Taxes2731775Net Profit Ratio6.4272700494Gross Profit Ratio28.7268064708Earning Per Share2.22Return on Capital Employed0.0619127774Solvency RatioDebtor Collection Period76.5971848555
Merger & Acquisition Assignment_3

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