Recommendation of Acquisition Target
SGH Warszawa Winter 2012
An example of the Motorola Solutions
In the following three pages I will give main reasons for investing into this company. I’m going to use key figures presented the book Financial Management – Principles and Applications (10th Edition) by Arthur J. Kewon et al. referring to chapters 1 – 10. I’m going to focus on the analyzing part of key elements of the balance sheet. I chose this company because it used to be one of the leaders in different sphere, but once it failed to compete, instead of going out of business, it was divided by 2 companies. And to my mind, Motorola is the best example of perfect decision making.
My recommendations: This Company is up to date provider and developer of high-end electronic services with growing potential. Hold the shares in the company as it’s rising and developing fast! BUY!
Motorola Solutions
The Enterprise Mobility Solutions segment designs, manufactures, sells, installs and services analog and digital two-way radios, wireless LAN and security products, voice and data communications products and systems primarily for private networks, wireless broadband systems and end-to-end enterprise mobility solutions to a wide range of customers, including government and public safety agencies (which, together with all sales to distributors of two-way communication products, are referred to as the “government and public safety market”), as well as retail, energy and utilities, transportation, manufacturing, healthcare and other commercial customers (which, collectively, are referred to as the “commercial enterprise market”). Company’s net sales were $19.3 billion in 2010, up 6% compared to net sales of $18.1 billion in 2009. It had operating earnings of $789 million in 2010, compared to incurring an operating loss of $492 million in 2009. Operating margin was 4.1% of net sales in 2010, compared to 2.7% of net sales in