Real World Reads – M&A
One key difficulty for many students studying for accountancy exams is to link material covered in lectures and notes to the real world of business. The Real World Reads series will provide students with some interesting articles and resources about topical business stories that link directly to different parts of subjects you will be studying. Relating your studies to the real world will not only make studying the topic a small bit easier (knowing that it is actually relevant for the real world!) but it also provides you some scope to bring in relevant examples to your answers in an exam setting.
First up we will take a look at the area of mergers and acquisitions;
Greencore’s Acquisition of Peacock Foods
Greencore’s acquisition of Peacock Foods is a great recent example of an acquisition which covers;
- The rationale for M&A – e.g. growth in a new market, cost synergies;
- Pricing of a transaction (link company valuations) and its structure (e.g. type of consideration and timing);
- Financing M&A (debt + rights issue); and
- Post-acquisition plans for the new combined entity.
Key Reads:
Financial Times Coverage of Deal
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