Fi561 You Decide

You resolve Page 1 FI561 Mergers & Acquisitions Week 3 Scenario Summary This is ground on Mercks Acquisition of Medco Case 5. 1, pp. 124-125. Your Role/Assignment You are the lead and CEO of Merck. Make a testimony to the Board of Directors of Merck & Co. regarding this acquisition ground on the passs of the three associates and your own analysis. You are the head and mind executive Officer of Merck & Company, and you ordain consider 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, stool your recommendation to the Board of Directors. What go away you recommend? Yes? No? Yes with some conditions? What are the reasons for your recommendation? Activity make unnecessary an 8-10 page paper (double-spaced) of written analysis, including tables of financial calculat ions. Key Players Key Players protrude Title/Role/Character Script Text & Audio of import Operating OfficerIm concerned about synergy and integration issues betwixt our highly research-oriented development of pharmaceutics here at Merck, and a prescription medicinal drug marting company like Medco. I am concerned that the cultures and trading operations of the two companies arent going to mix well, and that this deal would result in an expensive failure. executive director Vice President, Sales & Marketing Im all for this acquisition It go away open new food marketing supplement opportunities in the Managed Care market. Medcos marketing database allow create market expansion opportunities.This is the perfect answer for the current competitive environment, where other pharmaceutical manufacturers are acquiring drug marketing companies. You nail down Page 2 Chief Financial Officer This is my concern I want to make sure that Merck pays a premium for Medco at $6. 6 billion dollars. The combine of the two companies will immediately result in increase in Earnings Per Share for the confederacy vs. Merck as a stand- alone company. Although, Im still concerned about continuing the growth of the straining price of Merck after the target company is acquired.Grading Rubric Category Points verbal description Understanding 55 Demonstrate a strong grasp of the line at hand. Demonstrate understanding of how the variant concepts apply to the hassle. Analysis 55 Apply original thought to solving the business problem. Apply concepts from the grad material correctly toward solving the business problem. Execution 25 keep your answer clearly and succinctly using strong organization and graceful grammar. Use citations correctly. Total 135 A quality paper will meet or exceed all of the above requirements.Fi561 You DecideYou Decide Page 1 FI561 Mergers & Acquisitions Week 3 Scenario Summary This is based on Mercks Acquisition of Medco Case 5. 1, pp. 124-125. Y our Role/Assignment You are the Chairman and CEO of Merck. Make a recommendation to the Board of Directors of Merck & Co. regarding this acquisition based on the recommendations of the three associates and your own analysis. You are the Chairman and Chief Executive Officer of Merck & 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 import an 8-10 page paper (double-spaced) of written analysis, including tables of financial calculations. Key Players Key Players propose Title/Role/Character Script Text & Audio Chief Operating OfficerIm concerned about synergy and integration issue s between our highly research-oriented development of pharmaceuticals here at Merck, and a prescription care for marketing company like Medco. I am concerned that the cultures and operations of the two companies arent going to mix well, and that this deal would result in an expensive failure. Executive Vice President, Sales & Marketing Im all for this acquisition It will open new marketing leverage opportunities in the Managed Care market. Medcos marketing database will create 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 billion dollars. The combination of the two companies will immediately result in increase in Earnings Per Share for the combination vs. Merck as a stand- alone company. Although, Im still concerned about cont inuing the growth of the dribble price of Merck after the target company is acquired.Grading Rubric Category Points exposition 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 bring out your answer clearly and succinctly using strong organization and graceful grammar. Use citations correctly. Total 135 A quality paper will meet or exceed all of the above requirements.