Advanced Financial Management Cooper Industries Case March 30‚ 2009 Jesse Van Gestel ID#200504399 Cooper Industries‚ Inc. 1. If you were Mr. Cizik of Cooper Industries‚ would you try to gain control of Nicholson File Company in May 1972? 2. What is the maximum price that Cooper can afford to pay for Nicholson and still keep the acquisition attractive from the standpoint of Cooper? [Treasury Bills yielded 5.6% in May 1972.] 3. What are the concerns and what is the bargaining position
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Cooper Industries Case Study Introduction: Cooper Industries Inc.‚ is considering an acquisition of Nicholson File Company‚ a candidate for the company’s diversification program. Cooper CEO Robert Cizik approached Nicholson three years prior and was rejected‚ but the circumstances have changed and there is a real opportunity for Cooper to acquire Nicholson. Our team of analysts will evaluate the company’s financials to determine whether or not this is a smart acquisition for Cooper. Based off
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Cooper Industries’ Corporate Strategy Case Analysis Company Vision The vision of Cooper Industries‚ as stated in the case‚ was to do an ‘outstanding job at the unglamorous part by making necessary products of exceptional quality.’ The goal was to operate in industries that had become somewhat of a necessity for consumers. Examples of such industries include: power transmission‚ hand tools‚ drilling and others. Cooper industries had started in 1833‚ as an iron foundry‚ and had existed most of
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Spring 2010 08 Fall Cooper Industries‚ Inc. Prepared by: Finance 450 Overview & Introduction Cooper Industries is looking to acquire Nicholson File Company. It meets the three criteria that Cooper looks for in acquiring a company. “First‚ the industry should be one in which Cooper could become a major factor. The industry must be fairly stable‚ with a broad market for the products and a product line of ‘small ticket’ items. Finally‚ it had to be a leading company in
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Cooper Industries 1. What is Cooper’s corporate strategy? How does it create value? What are Copper’s key resources? 2. Should Cooper Industries acquire Champion Spark Plugs? (How is this acquisition likely to affect shareholder value?) 3. What are the limits to Cooper’s corporate strategy? Cooper’s corporate strategy is to expand the company to lessen its dependence on the cyclical natural gas business and to exhibit stable earnings. The way they achieved this over the years was through the merger
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• Coopers strategy: Cooper Industries is a broad company that uses the M&A strategy of diversification by acquiring companies that posses their own strong assets and exhibit stable earnings. As stated by the Corporate Role the company’s acquisitions had guidelines of companies that served a broad customer base‚ had stable earning and proven manufacturing operations using well-known technologies and had brand name product from market leaders. • How does it create value: As stated by Cooper
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accident that happened aboard the offshore platform Piper Alpha in This summer 1988 wiped out 167 people and price vast amounts of dollars in damage to property. It had been triggered with a massive fire that was not caused by an unpredictable “act of God” but of an amount of errors and questionable choices. Many of them were rooted within the organization‚ its structure‚ methods‚ and culture. These business factors are generalizable with other industries and engineering systems. They include defects within
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Group Case Analysis: Cooper Industries‚ Inc. MBAD 6235 Section 11 December 3‚ 2014 Elisabeth Goodson‚ Lynette Hammond‚ Wanting Hou‚ Sam Inman‚ Qian Jin‚ Weisi Sun‚ Shumin Xu‚ and Yuru Zhang I. Summary of the Problem Cooper Industries was founded in 1919 as an equipment and heavy machinery manufacturer. Over time‚ Cooper Industries experienced significant growth through acquisitions. Nicholson File Company had been on Cooper’s shopping list for years as a company to acquire. What made
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tool industry. They were originally called Sears and Roebuck until the early 1970’s‚ but since then the Roebuck part of their name has been dropped. During the early 1970’s was when Sears began to develop more business in a retail setting‚ as they began expanding heavily into suburban shopping malls and doing less business through their mail-order catalog‚ which had been historically what had made them a well known company. The major brand that Sears holds that could have competed with Cooper/Nicholson
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Company Bio Enager Industries Inc. is a young company whose growth was profound up to 1993 when it amassed sales over $222 Million. This company is comprised of three main divisions that are all considered to be independent from one another. The first and oldest division of the company is the Consumer Products Division which designs‚ manufactures‚ and markets a variety of kitchenware. The Industrial Products Division focuses its efforts on creating machinery that is uniquely and specifically designed
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