Case analysis: Merger & acquisition case analysis

(3 pages double space, only use 2 firms 10-k I linked below as references, no outside, internet sources. I will send the case example and CAGR formula after you assigned) Follow the example is the best way to execute this project. My professor love data, so please use exactly data in 10-K and cite It carefully)

Based on 10-k of 2 firms Dicks Sporting Good, Foot Locker. (Both firms defined as U.S. specialty sporting goods retail industry)

Write a case analysis define that 2 firm should merger or aquisition ( 2.5 pages)

I.Introduction (10lines): Name 2 firms, Review data for both firms to give the reader a good idea of what is being examined ( Revenue 2019, net income 2019, calculate Compound Average Growth Rate ( CAGR) from most recent three years)

( Look at financial data report in both 10K, ITEM 6)

II.Body: (1.5 -2 pages)

1.1 Confirmed firms industry and the proposed action is horizontal merger or horizontal acquisition ??? ( both firms defined as U.S. specialty sporting goods retail industry) (1 sentences)

1.2 Talk about how the firms describe themselves. ( How many stores they have, brands, revenues from ecommerce, revenue from retail sale, v.v….) (0.5 pages)

1.3 Answer why the proposal is merger (or acquisition) (1 sentences)

2.1 Determine the potential sources of Synergy ? How this synergy may affect the combined firm’s economic? Where is the data that support the synergy? (about 1 pages) ( primary sources of synergy in the proposed merger (or acquisition) of both firms is that both firms are in same U.S. specialty sporting goods retail industry)

Hint: My professor said It is good synergy. He said this make sense because dick tense to help huge store and Footlocker tend to have all the location that Dick doesn’t.

Both revenues are also same, so in my opinion I think both firms should merger, but please take a look carefully in both 10-ks to make your decision)

(Whenever you talk about increased or decreased revenues of each company, please calculate CAGR within most recent 3 years and bring it to paper)

III. Conclusion: ( 3/4 pages) Make recommendation: Confirm that the firm should proceed with merger (or acquisition) or not.

If yes describe why is it good synergy? Provide data from the firm’s 10-K to support your answer

( If it is good synergy its perfect.

If not, It is ok to say that its not good synergy but you need to make sure that you have enough data to support it. Is there enough synergy there and not enough other issue? )

Definition:

Synergy: the idea of two things in combination creates more value or performance than its separated individual part.

Merger: The joining of two independent companies. Forms a combined entity

Acquisition: Purchase of one company by another. Can be hostile when the target firm does not wish to be acquired

Note: Read the the case example carefully before start. Also try to avoid copy words from example file. I need to turn it in online. It will be plagiarism.

Let’s start!!!!!!!!