Acc 556 Assignment 2
Financial Accounting for Managers
Maurice Alexis
Strayer University
Prof. Dr Neil Weiss
March 17, 2015
1-Describe the company that you currently work for, have previously worked for, or would like to work for in the future. Determine at least two (2) compelling reasons that this company should prepare and manage a budget. Predict the two (2) most likely positive and negative financial outcomes for this company if it properly or improperly performs effective budgeting. Biomet 3I is the company I have been working for since 2007. Biomet, Inc. is a medical device headquartered in the Warsaw, Indiana business cluster. This company specializes in reconstructive products for orthopedic surgery, neurosurgery, craniomaxillofacial surgery and operating room supplies, and dental implants. Established in 1977, it delivered its first hip replacement in 1978. But in September 2007 during a club deal this enterprise was acquired by a consortium of private equity firms consisting of the Blackstone Group, Goldman Sachs, Kohlberg Kravis Roberts L.P. and TPG Capital before pertaining to four investors whose names are Dane A. Miller, Ray Harroff, Niles Noblitt, and Jerry Ferguson. In 2010, during the time of the great recession, the top management of this manufacture laid off 250 people out 9200 while opening two other branches overseas in Spain and in China. Apparently some issues arise in the financial system of this company which makes it over budget with a deficit 3.5 million according to a Team member in the accounting department.
At the end of 2013, a merger was announced between Biomet and Zimmer Holdings. It was a success and the new company, in a bid, acquired Biomet for a fee of $13.4 billion. But in October 2014, EU antitrust regulators opened an investigation into Zimmer’s bid on the grounds thinking that the deal may lead to substantial decreases in competition in certain markets. The verdict of the investigation into the deal that would make Zimmer the
Maurice Alexis
Strayer University
Prof. Dr Neil Weiss
March 17, 2015
1-Describe the company that you currently work for, have previously worked for, or would like to work for in the future. Determine at least two (2) compelling reasons that this company should prepare and manage a budget. Predict the two (2) most likely positive and negative financial outcomes for this company if it properly or improperly performs effective budgeting. Biomet 3I is the company I have been working for since 2007. Biomet, Inc. is a medical device headquartered in the Warsaw, Indiana business cluster. This company specializes in reconstructive products for orthopedic surgery, neurosurgery, craniomaxillofacial surgery and operating room supplies, and dental implants. Established in 1977, it delivered its first hip replacement in 1978. But in September 2007 during a club deal this enterprise was acquired by a consortium of private equity firms consisting of the Blackstone Group, Goldman Sachs, Kohlberg Kravis Roberts L.P. and TPG Capital before pertaining to four investors whose names are Dane A. Miller, Ray Harroff, Niles Noblitt, and Jerry Ferguson. In 2010, during the time of the great recession, the top management of this manufacture laid off 250 people out 9200 while opening two other branches overseas in Spain and in China. Apparently some issues arise in the financial system of this company which makes it over budget with a deficit 3.5 million according to a Team member in the accounting department.
At the end of 2013, a merger was announced between Biomet and Zimmer Holdings. It was a success and the new company, in a bid, acquired Biomet for a fee of $13.4 billion. But in October 2014, EU antitrust regulators opened an investigation into Zimmer’s bid on the grounds thinking that the deal may lead to substantial decreases in competition in certain markets. The verdict of the investigation into the deal that would make Zimmer the
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