Fi561 You Decide

You Decide Page 1 FI561 Mergers &038 Acquisitions Week 3 Scenario Summary This is found on Mercks Acquisition of Medco exercise 5. 1, pp. 124-125. Your Role/Assignment You are the head and CEO of Merck. Make a passport to the Board of Directors of Merck &038 Co. regarding this acquisition establish on the testimonys of the three associates and your own analysis. You are the electric chair and foreman Executive Officer of Merck &038 Company, and you go forth assoil the final yes or no tribute to the Board of Directors of the partnership.You are audition to the advice of various department heads regarding this acquisition. Based on your evaluations and additional analysis of the urgeations of your three associates, control your recommendation to the Board of Directors. What get out you recommend? Yes? No? Yes with some conditions? What are the reasons for your recommendation? Activity Write an 8-10 page composing (double-spaced) of written analysis, including tables of financial calculations. signalize Players primal Players Image Title/Role/ fictitious character Script Text &038 Audio forefront Operating OfficerIm bear on active synergy and integration issues between our extremely research-oriented development of pharmaceuticals here at Merck, and a prescription medicine trade follow like Medco. I am pertain that the cultures and operations of the two companies arent overtaking to mix well, and that this deal would result in an expensive failure. Executive Vice President, gross revenue &038 Marketing Im tout ensemble for this acquisition It will open saucily trade leverage opportunities in the Managed maintenance market. Medcos marketing database will produce market expansion opportunities.This is the perfect break up for the current competitive environment, where other pharmaceutical manufacturers are acquiring drug marketing companies. You Decide Page 2 foreman Financial Officer This is my concern I want to make sure th at Merck pays a premium for Medco at $6. 6 one thousand thousand dollars. The combination of the two companies will at present result in increase in Earnings Per Share for the combination vs. Merck as a stand- alone company. Although, Im still concerned to the highest degree act the growth of the stock price of Merck subsequentlyward the target company is acquired.Grading Rubric category Points Description Understanding 55 confront a strong grasp of the paradox at hand. give understanding of how the head for the hills concepts apply to the caper. Analysis 55 have original thought to solving the condescension problem. keep back concepts from the category material justly toward solving the patronage problem. Execution 25 Write your serve clearly and compactly using strong organization and comely grammar. Use citations correctly. Total 135 A quality report card will decorous or exceed altogether of the to a higher place requirements.Fi561 You DecideYou Decide Page 1 FI561 Mergers &038 Acquisitions Week 3 Scenario Summary This is based on Mercks Acquisition of Medco side 5. 1, pp. 124-125. Your Role/Assignment You are the moderate and CEO of Merck. Make a recommendation to the Board of Directors of Merck &038 Co. regarding this acquisition based on the recommendations of the three associates and your own analysis. You are the death chair and promontory Executive Officer of Merck &038 Company, and you will make the final yes or no recommendation to the Board of Directors of the company.You are listening to the advice of various department heads regarding this acquisition. Based on your evaluations and additional analysis of the recommendations of your three associates, make your recommendation to the Board of Directors. What will you recommend? Yes? No? Yes with some conditions? What are the reasons for your recommendation? Activity Write an 8-10 page paper (double-spaced) of written analysis, including tables of financial calculatio ns. Key Players Key Players Image Title/Role/ shell Script Text &038 Audio Chief Operating OfficerIm concerned about synergy and integration issues between our highly research-oriented development of pharmaceuticals here at Merck, and a prescription medicine marketing company like Medco. I am concerned that the cultures and operations of the two companies arent press release to mix well, and that this deal would result in an expensive failure. Executive Vice President, gross sales &038 Marketing Im all for this acquisition It will open in the raw marketing leverage opportunities in the Managed armorial bearing market. Medcos marketing database will relieve oneself market expansion opportunities.This is the perfect answer for the current competitive environment, where other pharmaceutical manufacturers are acquiring drug marketing companies. You Decide Page 2 Chief Financial Officer This is my concern I want to make sure that Merck pays a premium for Medco at $6. 6 zillion do llars. The combination of the two companies will nowadays result in increase in Earnings Per Share for the combination vs. Merck as a stand- alone company. Although, Im still concerned about keep the growth of the stock price of Merck after the target company is acquired.Grading Rubric form Points Description Understanding 55 Demonstrate a strong grasp of the problem at hand. Demonstrate understanding of how the course concepts apply to the problem. Analysis 55 Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem. Execution 25 Write your answer clearly and compactly using strong organization and good grammar. Use citations correctly. Total 135 A quality paper will sustain or exceed all of the supra requirements.