Contents Abstract 1 Key words: merger HP Compaq synergy 1 1.Introduction of the case 1 1.1 The Hewlett-Packard Company 1 1.2 The Compaq Company 2 1.3 Motives 2 1.3.1 Strategic motives 2 1.3.2 Financial motives 3 Operating Synergy (mainly from cost savings) 3 Contribution Margin 3 2.HP’s Concerns 4 2.1 Business portfolio 4 2.2 Strategic problems 4 2.3 Financial impacts 4 2.4 Integration risk 5 3.Analysis and solutions 5 3.1 Stand-alone valuation 5 3.2 Synergy valuation 6 3.3 Premium
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The Hewlett-Packard and Compaq Merger Analysis The Proposed Merger with Compaq HP entered into an agreement with Compaq Computer Corporation in September 2001. In this definitive agreement‚ HP is going to purchase all of Compaq’s common shares outstanding‚ and pay a total price of 0.6325 shares of its common stock for each share of Compaq’s common stock. To evaluate this transaction for the benefits of HP’s shareholders‚ we use the excess earnings model to forecast HP’s stock price if it standalone
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the merger of Glaxo-Wellcome‚ Wellcome-Hallas manager Ofra Sherman found herself in an interesting predicament. With uncertainty as to whether she answered to Wellcome or Promedico‚ she needed to find a way to keep her staff informed and motivated amidst uncertainty of their future. With minimal information‚ she needed to decide who she was going to answer to‚ what she was going to tell her employees‚ and ultimately what direction she was going to take her team in the aftermath of the merger. How
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POST MERGERS HR AND CULTURAL ISSUES The post liberalization period was of mergers and acquisitions and still it is continuing as a strategic driver for market dominance‚ geographical expansion‚ leverage in resource and capability acquisition‚ competence‚ adjusting to competition. M&As are strategic alliances. People Management plays a critical role in M&A. People [pic]issues like staffing decision‚ organizational design‚ etc.‚ are most sensitive [pic]issues in case of M&A negotiations‚ but it
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Vo-tech is a great option for highschool students because it creates a smooth transition into college. One way vo-tech creates a smooth transition into college by teaching students hands on skills. When students are in nursing school they will need many skills to prepare them for the workforce. In vo-tech it gives students a head start into the college levels skills students will learn once more inside of college. Another reason why vo-tech is a good option is when your ready for nursing school there
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When planning the merger between Myrtle & Associates and Bellview Law Group‚ to one firm called MAB Law Firm‚ foresight is needed so that possible issues can be seen‚ addressed as best as possible‚ and limit the integration costs as it relates to the information technology infrastructure of both firms into one site. Differences between the two firms’ infrastructure include two different sets of network operating systems‚ servers‚ network connectivity‚ workstations‚ software‚ security configurations
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Once I arrive on campus‚ I’ll contribute to Georgia Tech not only as a student‚ but also as a volunteer and an active member of the community. As part of Tech’s vibrant engineering program‚ I will contribute through collaborative work with others and through intelligent and productive class discussions. I’ve been part of my high school’s heavily discussion-based International Baccalaureate program for the last four years; consequently‚ I’ve learned how to have intelligent and productive discussions
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goal of financial managers is to maximize the shareholders’ wealth. Therefore‚ merger and acquisition decisions should be consistent with shareholder wealth maximization‚ and financial characteristics of the targets to consider in the decision-making process. The net present value method is one of the useful methods that help financial managers to maximize shareholders’ wealth. The capital budgeting decision mergers Acquisitions Net Present Value
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The Department of Labor video and the New Tech Collaboration Rubric do not have many similarities when working independently than as a group. In the Department of Labor video the people talk more about how the individuelle work is done and good skills to have while doing so. While in the Collaboration Rubric it talks more about how the work gets done but within a group environment. Even though they have some difference‚ they also have some similar content‚ and that is some not all. In the Department
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EFFECTS OF MERGERS AND ACQUISITIONS ON BUSINESS GROWTH: CASE STUDY OF SOCIÉTÉ GÉNÉRALE - SOCIAL SECURITY BANK LTD (SG-SSB) CHAPTER ONE 1.0 INTRODUCTION AND BACKGROUND TO THE STUDY Chief Executive Officers and the Board of Directors of most businesses often think about the growth of their businesses. The reason is that when businesses grow‚ they yield the best returns other things being equal. Mergers and acquisitions is one of the
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