and wine‚ Kudler Foods‚ and the internationally recognized fine food and wine wholesaler‚ LaFleur Trading Company‚ face the decision as to what method of expansion suits their companies best. This paper discusses the initial public offering (IPO)‚ merger‚ and acquisition methods of expansion for Kudler Foods and LaFleur Trading Company as well as the global currency risks of conducting business on an international level. Initial Public Offering (IPO): Advantages and Disadvantages
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Introduction In 2003‚ the announcement was made of a merger between FedEx Corporation and Kinko’s‚ Inc. There are multiple reasons why corporate decision makers consider mergers‚ “the potential efficiency benefits from mergers and acquisitions include both operating and managerial efficiencies‚” (Pautlar‚ 2003‚ p. 122). “These mergers and acquisitions are aimed at increasing growth‚ enhancing existing capabilities and developing new markets” and as a strategic consideration they can “generate cost
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IntroductionRiordan Manufacturing is a global plastics injection molding company‚ employing 550 people with estimated annual earnings of $46 million. Dr. Riordan‚ a professor of chemistry‚ who had obtained several patents relative to processing polymers into high tensile strength plastic substrates‚ was also the founder of Riordan Manufacturing. Sensing the commercial applications for his patents‚ Dr. Riordan started Riordan Plastics‚ Inc. in 1991. Owned by Riordan Industries‚ which is a fortune
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From: Chief Marketing Officer Subject: Potential Acquisition Date: July 26‚ 2013 The purpose of this memo is to provide feedback‚ detailing the Marketing Teams’ perspectives and update you on results from several inquiries relating to a prosed merger of the Italian hotel chain. While some research is conclusive‚ other variables that may affect the acquisition are; monetary exchange rate‚ geological changes‚ and reconstruction and improvements cost. North east Italy is encompassed‚ beautifully
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management of working capital and the optimal financial strategies employed is presented. Also evaluated are the potential improvements in financial performance along with long-term and short-term strategies. Lastly‚ considered in this paper is whether a merger or acquisition would affect SWA ’s employed strategic outlook. The financial challenges facing the company in the working capital management simulation showed how companies are able to play a balancing act with incoming and outgoing cash flow floats
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Fredericks of Hollywood‚ the bawdy women’s undergarment firm‚ is transforming into an innovative worldwide brand. The mechanism for each of these transformations was the reverse takeover (RTO). The reverse takeover‚ also referred to as “reverse mergers‚” is a relatively new topic of growing interest to academics. Academic research is scant because RTOs involve a relatively small number of firms; the RTO is principally viewed as a financial move of importance to venture capitalists; and‚ it is typically
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M&A Motives There are two types of motives involved in merger and acquisition and these are Explicit and Implicit motives. Explicit Motives • Synergy: Synergy means that the merged firm will have a greater value than the sum of its parts as a result of enhanced revenues and the cost base. • Economies of Scale: Economic of scale refer to the reduction in unit cost achieved by producing a large volume of a product. Horizontal mergers aim at achieving economies of scale. This phenomenon continues
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overall scope and direction of a corporation and the way in which its various business operations work together to achieve particular goals. Cooperation Strategies Cooperation Strategies contains of 3 aspects : 1. Joint Venture / Partnering 2. Merger / Acquisition 3. Strategic Alliance Cooperation Strategies Definition : Is a popular strategy that occurs when two or more companies form a temporary partnership for the purpose of capitalizing on some opportunity. Joint Venture / Partnering
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what the probability was that booth the DOJ and the Ec would approve the merger‚ and of course eventually what is the most proper and profitable tactic to take at this certain time. The strategy of Gallionelli Gallinelli did the strategy that included buying shares in Honeywell and shorting shares in GE for the purpose of conducting arbitrage. First of all‚ a well-known direct of indirect by-product of acquisition or merger is the foreseeable or predictable change in stock price. As to the merger’s
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Journal of Banking & Finance 23 (1999) 255±285 Interest-rate exposure and bank mergers Benjamin Esty a‚* ‚ Bhanu Narasimhan b‚ Peter Tufano c a b Harvard Business School‚ Morgan Hall 481‚ Boston‚ MA 02163‚ USA Marakon Associates‚ 2831 Malabar Ave.‚ Santa Clara‚ CA 95051‚ USA c Harvard Business School‚ Morgan Hall 377‚ Boston‚ MA 02163‚ USA Abstract This study examines how interest rates and interest-rate exposures aect the level of acquisition activity‚ the identities
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