Merger and acquisition case study
M&A Case Problem Assignment Marking Grid
Question: Choose ONE of the following ‘failed’ mergers and acquisitions case:
Daimler-Benz and Chrysler; America Online and Time Warner; Sprint and Nextel Communications; HP and Compaq; Kmart and Sears
Using the case, answer the following questions:
i. What rationale was given by the companies to engage in M&A?
ii. How did the acquiring company finance the M&A?
iii. What was the initial market reaction to the M&A?
iv. Why did the M&A fail?
v. What suitable measures could the companies have employed to prevent the demerger and divestiture?
1.Introduction and background to the case
2.Rationale for engaging in M&A
3.Discussion of the financing of the M&A
4.Evaluation of the market reaction to the M&A
5..Examination of the causes of the M&A failure
6.Discussion of demerger and divestiture prevention measures and strategies
8.Scholarly skills, including referencing, use of scholarly language, structure, presentation 10 marks