Comprehensive Strategic Acquisition and Merger Analysis Report

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AI Summary
This report provides an in-depth analysis of a company facing strategic decisions regarding acquisition and mergers. The organization is evaluating the impact of potential acquisitions by competitors and a smaller firm in the wearable business, considering factors like capital expenditure, market share, and financial prospects. The report assesses the feasibility of these acquisitions, examining the time to break even, potential risks of financial strain, and the strategic implications of product restructuring. It includes a benefit map outlining various options, such as partnering with a sister organization or selling the product line, and analyzes the weighted value of each option. The analysis considers the impact on market dominance, client base, revenue, and competitive advantage, emphasizing the need for careful planning to avoid potential financial risks and ensure long-term sustainability. The report aims to provide comprehensive information to aid in decision-making and strategic planning for the company's future growth and market position.
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Executive Summary
The organization is looked with different key issues nearby that would change its tasks. For this
situation, the organization is faced with support of stable money related prospects because of the
expanding capital consumptions after the proposed securing and merger by the adversary
organizations. Basically, mergers and procurement are methodologies that are connected by
numerous organizations with the expectation of improving business sector strength and
expanding the income. In any case, the capital consumption related with such acquisitions is
tremendous, which relies upon the intensity of the adversary organization, its benefit base, and
the client base. It ought to be noticed that the organization has communicated the aim of being
gained by real contenders and another littler firm that has a critical piece of the overall industry
in the wearable business. Upon the endorsement by the CIO, the organization will be purchased
or will converge with one sister organizations relying upon the advantages procured. In any case,
such a vital issue needs watchful arranging and legitimate anticipating because of the seriousness
of the asset portion and advantages. Regardless of the prospects that the firm is set to enhance the
income altogether, there is a risk that the firm may endure fiscally because of the long time taken
to breakeven its tasks in the gained substances. Further, the need to investigate the choice is
credited to the way that the company's capital use against the income may rise altogether.
Achievability
The firm must be careful to access whether the acquisition by the three companies would affect
the liquidity of the firm. It is also important that the company avoids instances of overstretching
its capital which would occasion bankruptcy. On the positive aspect, the report will intensively
evaluate in depth the time that the firm is projected to break even from the new acquisition. The
market share and dominance is based on the fact that initially the firm is ranked in a better
position to offer services and products and adding the customer base of the two entities should
to add a significant market share to its current state. Analyzing the strategic decision of
changing the company’s products through a restructuring process would help to determine
whether the firm would gain through the proposed capital reduction system. In addition, the new
approach will help in diversification of the products, which would not only enable the firm to
increase the market share but also promote technological advancement. In this case, analyzing
this strategy will provide comprehensive information that is essential in decision making.
Conclusively, analyzing company’s strategic plans will enables the management to have an
overall look at all the possibilities. Certainly, the appropriate decision will be made whether the
firm should proceed with the acquisition of the two entities in the bid to stabilize its market.
Project Outcome
The organization's capital base against the income should manage the move towards the
consolidation and procurement process (P. M. B. O. K., 2008). Notwithstanding, with the
execution of the correct methodology issue of being procured the sister organizations and in
addition the contenders, the capital base will fundamentally drop, an angle that will affect
emphatically the profit per offer of the organization. In the event that the securing is to be
effected utilizing suspending the product offering, the partners may be constrained to relinquish
the profits in light of the fact that the benefits will be in the hands of the third part influencing the
notoriety of the business (Cartwright and Cooper, 2012). In this way, when settling on the key
choice on the profound issue, the firm needs to make a money saving advantage examination to
settle on a suitable choice. On a positive note, the obtaining will see the firm gain showcase
predominance Selling the product offering to a one of the business mammoths that is occupied
with developing its piece of the overall industry in the wearable's market. This move will mean
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expanded client base, increment in the income, upgrade its intensity, and enhance item
broadening among different advantages. Critically, the thought of immense development by the
organization is required by the way that the association could dive into a liquidation
circumstance. In this way, it stays to be seen whether the firm will make fitting move and keep
the undesired impacts if the CIO favors the securing.
Benefit Map
The Company is looked with a circumstance that forces it to settle on a choice whether to
cooperate with the sister organization to help the redesign of the gadget with a more up to date
set of highlights and Bluetooth innovation, and in addition take care of the assembling costs for
the gadget, while requesting 60% of any potential benefits later on or select to Selling the
product offering to a one of the business mammoths that is keen on developing its piece of the
overall industry in the wearable's market however not to Discontinue the product offering. Be
that as it may, such a move will have suggestions as it isn't evident whether the clients will even
now be placated with the new game plan. The effect available intensity combined with the need
appropriate manageability makes the key issue commendable for legitimate investigation
(Lubatkin, 2013). Furthermore, the controllers are additionally anticipating that the firm should
extend the administration impression, which needs more endorsers of the administration. In
accordance with this, it is sure that in the association's methodology of rebuilding its items,
legitimate investigation is required to guarantee that the firm stays focused in the market,
accomplishes satisfactory returns, expands its items, and additions enhancement in the wearable
innovation.
Weighted value of options and ranking of each option
The project management in this case study has expounded on the investigation of the vital
administration that is connected by our organization. As exhibited in the investigation, the
association's goal of development and extension has required the procurement by an adversary
organization. Also, the organization's other real issue is the item reclassifying with the end goal
to diminish the capital use cost. The two key designs are essential henceforth justifying the firm
to direct examination. The investigation results will incorporate far reaching data about the
positive and the negative characteristic of every technique. For example, the obtaining stopping
the product offering will have cost suggestions because of the necessity of the high capital
misfortune and client base misfortune (Gambles, 2009).
The anticipated money streams will be assessed to decide whether the procedure is worth for
thought or execution. Through breaking down the organization's anticipated money streams, the
firm will be assessed to perceive to what extent the firm will take to meet the underlying expense
of obtaining. On an extra note, the effect available offer controlled by the organization will be
out not point of view to decide if the firm will pick up market predominance after the
procurement by the three substances.
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