Chat with us, powered by LiveChat Read the assigned article, ‘Are You Paying Too Much for That Acquisition?’ by Eccles, Lanes, and Wilson, from Harvard Business Review (1999). In the textbook, complete the following prob - Writeden

Read the assigned article, "Are You Paying Too Much for That Acquisition?" by Eccles, Lanes, and Wilson, from Harvard Business Review (1999).

In the textbook, complete the following problems.

  1. Problem 7.11 (Show calculations for a, b, and c.)
  2. Problem 7.12 (Show calculations for a and b.)

Using information from "Are You Paying Too Much for That Acquisition?" address the following with a minimum of 500 words.

  1. List and describe the components used to calculate synergy value.
  2. Critically evaluate which component is most underestimated. Explain your answer.
  3. Using the attached spreadsheet "Excel-Based M and A Valuation and Structuring Model," open the worksheet labeled BP APP B2 and study the Net Sales Growth Rate for 2002-2005. Next, open the worksheet labeled BP APP B1 and study the 2006-2010 Net Sales Growth Forecasts. Lastly, reference "Are You Paying Too Much for That Acquisition?" to identify the basis or rationale for justifying the 2006-2010 forecasts.

Eccles, R. G., Lanes, K. L., & Wilson, T. C. (1999). Are You Paying Too Much for That Acquisition? Harvard Business Review, 77(4), 136–146.

DePamphilis, D. (2015). Mergers, acquisitions, and other restructuring activities (8th ed.). New York, NY: Elsevier Academic Press. ISBN-13: 9780128013908