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What are the three items or factors that an analyst must consider when analyzing the target company’s revenues?

1.- Revenue recognition policies of the target company are one of the most
important areas that must be reviewed. What are the three items or factors that
an analyst must consider when analyzing the target company’s revenues?
– -When evaluating international M
& As, there are two methods that can be used to account for the foreign
exchange risks, political-legal risks, and other risks. List and describe each
method.
-Tesco’s
failure in its efforts with direct foreign investment (DFI) in southern
California, Nevada, and Arizona can be attributed to at least two reasons regarding the failures
of M & A’s. Although Tesco’s investment in the United States was a direct
foreign investment (not an M & A), some of the same reasons M & A’s
fail are applicable to Tesco’s efforts in the United States. Select two reasons
from the list below that contributed to Tesco’s failure in the U.S. and briefly
discuss each in the context of Tesco’s case.
i.
Overestimation of the target’s value, primarily
caused by an overestimation of the growth and/or market potential.
ii.
Overestimation of the expected operating,
financial, and/or managerial synergies.
iii.
Overbidding and overpayment.
iv.
Failure to undertake thorough due diligence of
the target (a rush to judgment).
v.
Failure to successfully integrate the target
after the merger or acquisition (lack of follow-through).
What was the final outcome of this
DFI for TESCO? What was the cost?