Tuesday, August 27, 2019
M&A Essay Example | Topics and Well Written Essays - 1250 words
M&A - Essay Example According to the information, it is known that the company had revenues drastically raisin from $92 million to 127 million, in 2011. This information alone is enough to give me enough reasons to acquire the company. The role of any business is to make profits, or at least break even. Therefore, critical analysis of the statement of financial positions should be done in order to come up with factual information concerning the move. In terms of competition, the company is doing well, to a point of out doing some other better companies. The company is also able to compete favourable with the competitors who directly supply the products to the customers. The other significant information which I want to know is the pricing strategies of the firm. I need to understand the way the company formulates its pricing policies, the way it deals with customers and how it adjusts its prices. One important issue, which is important concerning investment acquisitions, is getting to understand about pricing strategies. If the prevailing price was $10, then the investor cannot come and arbitrarily fix the price at $20 as this will result to loss of customers and the market grip. Looking at the financial statements will furnish me with enough information so that I can make informed decision about the firm. The firmââ¬â¢s historical performance, as shown by the revenues and gross profit margins, is of great help in making valid conclusions. It is also important to analyse the asset base of the company, as this will make me know whether it will be able to produce efficiently. The first way to learn about all this information I have listed is to visit the companyââ¬â¢s website. Here, much of the companyââ¬â¢s information concerning the financial status is obtained. The information will act as a directive of whether to invest or not. Visiting the company website is also helpful as I am able to get updated information concerning the company, the manager, the objective
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