This website uses cookies to ensure you have the best experience. Learn more

M&A Project Essay

7979 words - 32 pages

M&A Project

Table of Contents

1. Executive Summary 1
2. Introduction 2
2.1. History 2
2.2. Company structure 3
2.3. Products 4
2.4. Stock analysis 4
2.5. Competitors 5
2.6. Industry and Economic Trends Analysis 6
3. SWOT Analysis 7
4. Valuation 11
4.1. Weighted Average Cost of Capital 11
4.1.1. Re: Cost of Equity 12
4.1.2. Rd * (1-Tc): Cost of Debt 14
4.2. Pro Forma Forecasting 16
4.3. Discounted Cash Flow Valuation 19
4.4 Earning Valuation 21
4.5 Relative P/E Ratio Model 23
4.6 Synergy 26
5. Outcome and process of negotiations 28
6. References 30
7. Appendices 31

Executive Summary
The purpose of this ...view middle of the document...

The result from the SWOT analysis is that the firms are similarly aligned in both target customers and products offered. Therefore, acquiring Jos. A Bank would result in a gain in market share as well as cost synergies such as production, consolidation of retail stores, employees, and marketing.
The quantitative features are assessed using the following models to get the price per share of equity: the DCF model, earnings valuation model, and the relative P/E valuation model. From these models sensitivity analysis was applied to evaluate a conservative price range for negotiations with Jos. A Bank management.
Beginning the negotiations our offer price began at $61.52 using 3.26% growth rate and a 16.87% WACC from the discounted cash flow valuation method. During the negotiations we decided to change our evaluation to be based off of the earning evaluation to get closer to the asking price from Jos. A Bank’s management team. The final offer was $68 per share for Jos. A Bank, which was still below our estimated highest price of $74.33 per share.
Introduction

1.1. History
The founder of Men’s Wearhouse George Zimmer, who was merely a college graduate when he made his first step into the apparel industry in 1971, got his start in Hong Kong working at his father’s raincoat factory for 6 months as a salesman. During those months in Hong Kong, Zimmer learned much about the retail industry and in 1973 Zimmer and his college roommates opened the first Men’s Wearhouse store in Houston, Texas. Men’s Wearhouse’s humble beginning as a men’s formal apparel store mainly selling polyester sports coats quickly proved to be a success in just a few short years. Utilizing his know-how in selling specialty clothing, George Zimmer opened his second store in 1974 and shortly after Men’s Wearhouse was in America’s living rooms in the form of TV commercials. During the 1980’s, Men’s Wearhouse rapidly expanded their operations and moved into its second geographic market, the San Francisco Bay Area. By the later part of the 1980’s, Men’s Wearhouse had established stores in the Pacific Northwest, Southwest, and Midwest parts of the U.S.
To continue their aggressive expansion model, Men’s Wearhouse issued their IPO in 1992, from which the capital raised helped fuel the expanding business. They also started to diversify their product lines by selling men’s shoes, business accessories, and casual apparel. By the mid 1990’s, Men’s Wearhouse was opening more than one store a week throughout the country. By the end of the decade, Men’s Wearhouse had over 450 stores and had purchased the Canadian men’s retailer, Moores the Suit People, and the men’s discount superstore, K&G. Men’s Wearhouse continued to capitalize on their opportunities to gain market share and currently have over 900 operational stores nationwide. Zimmer’s established vision and leadership has ambitiously crafted Men’s Wearhouse as a premier men’s apparel outlet and his steadfast commitment...

Other Papers Like M&A Project

Project Management Competencies in the Project Oriented Organization

3909 words - 16 pages , assessed and further developed. REFERENCES AND FURTHER READING Fincher, A. and Levin, G. (1997), ‘Project management maturity model’, Proceedings of the Project Management Institute 28th Annual Seminar/Symposium, Chicago, Project Management Institute, Sylva, NC. Gareis, R. and Huemann, M. (1998), ‘A process-oriented pm-approach’, Proceedings of IRNOP III, the International Research Network on Organizing by Projects, University of Calgary, Alberta

Project on Beverage Company Essay

1213 words - 5 pages (M) (Management Board or Ops Committee) OPTIONAL – Programme Director i.e. the Chief Coordinating Officer has fulfilled this rile where a small group of projects are inter-dependent (Purpose, Scope, Funding Required, Source and Timeline – max 200 words) Project Board (M) Project Director Project Champion Senior Supplier(s) Project Champion Senior Supplier(s) ----------------------- Project No.: Document No.:

Project Charter

3758 words - 16 pages -9. doi: 10.1108/13598541011018076 Cockrum, R. (2007, 11/20/2007). The Importance of a Project Charter, from http://pmcriticalpath.blogspot.com/2007/11/importance-of-project-charter.html Dobriansky, J. (2008, Dec 2008). IMPROVE YOUR IT ACQUISITION PROCESS WITH LEAN SIX SIGMA, PART II. Contract Management, 48, 34-40. Eileen, M. V. A., Jennifer, A. F., Wiljeana, J. G., & Geert, L. (2010). A framework for designing, managing, and improving

M&M Essay

1224 words - 5 pages Running head: M&M PROJECT REPORT Abstract This paper examines the proportion of M&M candies through the random sampling of 156 bags. After reading this paper one should have a better understanding of the process that accompanies packaging M&M candies. The bags used in the experiments were taken from different stores to help ensure a true sample of all the 1.69 oz of plain M&M candies. Introduction: Purpose of Report The

Enterprise Project Management

599 words - 3 pages to $ 140 billion in 1994 (Johnson, J. 2007). What astrophysicists called black holes, which is described as absorbing of matter and energy in large quantities is comparable to failed projects. When that happens, resources get sucked while little result is produced. Similarly, a project will surely fail without the involvement and support of management (Keil, M. Mähring & Magnus, 2010). For companies that handle multiple interconnected projects

Project Plan

4278 words - 18 pages details regarding project are revealed N/A Project Staffing Staff Availability Project delay M: Intense project activities makes availability questionable Somewhat likely Frequent review of project momentum at all levels. Consultant to identify any impacts caused by unavailability Find additional advisors Project staff leave before end of project Project delay M: The project activities is timely intense Likely Ensure appropriate line management

Project Charter

1298 words - 6 pages Project Dependencies 8 Project Approach 8 Project Organization 9 Communication Plan: 9 Project Guidelines: 9 Project Approvals 10 Project Description The Technical Director for a local school district wants three functional labs for various high school students to use. The labs will be essential for supporting the education of the students. Because there will be various students and instructors using the lab, it will require access to

Project Management Procedures

2101 words - 9 pages Tool 2 . Risk Management 10 Tool 3 . Work Breakdown Structure (WBS) 13 Purpose This procedure outlines the processes and phases that apply to the delivery of a project. This procedure outlines processes and tools which may be applied to projects, of varying size and scope. Scope A project is defined “involving a series of inter-related activities with defined start and finish times”. This procedure recognises an inherent variation in the

Project Management Procedure

2059 words - 9 pages . 9 Tool 2 . Risk Management 10 Tool 3 . Work Breakdown Structure (WBS) 13 Purpose This procedure outlines the processes and phases that apply to the delivery of a project. This procedure outlines processes and tools which may be applied to projects, of varying size and scope. Scope A project is defined “involving a series of inter-related activities with defined start and finish times”. This procedure recognises an inherent

Project Leadership Role of Trihealth- Case Study 2

1653 words - 7 pages part of a project’s organization, or external, such as customers, creditors, unions, or members of a community. (Piscopo, M) Depending on the complexity and scope of a project there may be very few or extremely large numbers of stakeholders. A project may be a part of a city or county public works department and may include all members of the community as stakeholders and number in the thousands. In determining what a stake holder is, it is

Project Portfolio Management

2613 words - 11 pages Project Portfolio Management Project Portfolio Management is a methodology to manage a company’s projects in a similar way that financial manager manages the company’s cash flow and related finances. According to Rouse (2013), “PPM (project and portfolio management) is a strategic prioritization methodology employed to analyze and manage current or proposed projects within an organization”. The purpose is to determine the best available

Related Essays

M&M Project Essay

991 words - 4 pages M Project Report Israel Sharipo September 13, 2013 Abstract This paper shows the true proportions of M&M candies through the random sampling of 3 different bags of plain M&M 1.69oz bag of candy bought from three different stores. I believed one will be able to determine data analysis and how it works as it relates to our class project. Introduction

M&M Project Essay

568 words - 3 pages M&M Project Math 336 (1) Buy a packet of regular size M&M's. Record the frequency of each color and then transfer this information to a bar chart and a pie chart. (2) Represent the number of M&M's per packet on a histogram using all of the class data. Is your histogram normally distributed? Check using the empirical rule. Also choose your favorite color and draw a histogram of the number of M&M’s of that color per packet based on class

Mm&M Project Summary Essay

521 words - 3 pages Strayer University M&M Project Summary Jeanette Willis Mat-300 09/14/2012 Introduction This M&M project was to get students such as myself to get a better understanding on how companies determine how they are going to package their product, market it and disburse among many different markets. The other purpose of this project was to determine statistical data analysis of M&M candies. However to determine what is

Research On China M Nitrophenol Industry 2014 Market Research Report

1137 words - 5 pages industry development trend and proposals. In the end, The report introduced M-nitrophenol new project SWOT analysis Investment feasibility analysis investment return analysis and also give related research conclusions and development trend analysis on Global and China M-nitrophenol industry. In a word, it was a depth research report on Global and China M-nitrophenol industry. And thanks to the support and assistance from M-nitrophenol industry chain