Identify at least three criteria that might be used to select a manufacturing firm as a...

Identify at least three criteria that might be used to select a manufacturing firm as a potential acquisition candidate. A financial services firm? A high-technology firm?

Expert Solution

Three criteria to select a manufacturing firm as a potential acquisition candidate:

1. Price/Cash FLow Ratio
If a company is generating more cash flow per share price, then the company is an ideal acquisition candidate. This is because it implies that the company is cash-rich and has good amount of cash generating capability. It also means that the company is cash-flow positive.

2. Debt/Equity Ratio:
A company having less debt is an ideal candidate for acquisition. The acquirer company would not have to deal with the debt load of the acquired company. A debt free company implies that the company is using its internal cash flows for its operations and not relying on other cash sources for its own operations. This implies self reliance on part of the company. Also Price/Cash FLow accentuates the very factor for acquisition.

3. ROIC - Return on Invested Capital:
If a company is able to generate higher percentage on return on invested capital, then the company is ably using its resources and assets in the best possible way. Such a company would bring positive synergies to the company with acquires it. Also it would be a win-win as internall efficient processed would be shared and best practices would be adopted.

jeff jeffy answered 2 years ago

Chapter 13 Define evaluative criteria and determinant criteria. Identify the determinant criteria you used for a...

Chapter 13 Define evaluative criteria and determinant criteria. Identify the determinant criteria you used for a recent purchase. List the factors that determine the type of evaluative criteria that consumers use. Name the four types of noncompensatory decision rules. What does it mean if a rule is noncompensatory? Chapter 14 Define consumer satisfaction. How does it differ from other important consumer behavior concepts? List out some possible postconsumption reactions Explain the expectancy/disconfirmation theory. Describe how it explains your satisfaction or...

Identify at least Three eponyms?

A bulb Thermometer is used to measure outside temperature. Identify at least three extraneous variables that...

A bulb Thermometer is used to measure outside temperature. Identify at least three extraneous variables that might affect the temperature reading. A skateboard is tested on a dynamometer in which the power delivered to the system is measured at three different but fixed wheel speeds and at different resistance torque settings for each wheel speed. What is the dependent variable? What are the independent variables?

Identify and discuss at least three (3) ways how email can be used to commit and/or...

Identify and discuss at least three (3) ways how email can be used to commit and/or cover up a crime. Include how forensics analysis can be used to uncover this evidence. 150 words or more.

Using at least three sentences, identify and describe two clinical diagnostic tests that are used for...

Using at least three sentences, identify and describe two clinical diagnostic tests that are used for the cardiovascular system. Include the purpose of each test in your description.

Define social class. Identify three criteria used to conceptualize social class placement. Define social stratification and...

Define social class. Identify three criteria used to conceptualize social class placement. Define social stratification and discuss the four systems of social stratification.

Select a policy that meets the following criteria (if need be, two out of the three...

Select a policy that meets the following criteria (if need be, two out of the three will work as well). a policy that could diminish racial or gender inequality on some dimension (wages, housing, etc). a policy that could target the wealthy - but NOT an income tax on millionaires a policy that could target extreme poverty. Next, select another policy from a different jurisdiction to analyze the differences and answer the following: 1. Briefly describe the main components of...

outline at least four criteria that should be used to evaluate approaches to performance measurement, and...

outline at least four criteria that should be used to evaluate approaches to performance measurement, and critically evaluate one approach using the criteria you specified. Which of the four criteria you identified do you consider the most and least important? What are the benefits and limitations of the performance measurement approach you chose, according to these criteria?

1. What are the criteria used to select the renovation projects? 2. What would be the...

1. What are the criteria used to select the renovation projects? 2. What would be the indicators that a hotel need to be renovated ? Please make reference to the stages of the hotel life cycle in the explanation.

what criteria are used to identify markets? what js the difference between an industry and a...

what criteria are used to identify markets? what js the difference between an industry and a market? for each of the following industries, state what market structure characterizes the industry and justify why you think it is that market structure: a) corn on the cob , b ) soft drink manufacturers, c) Dentists, d) cable television , e) Pizza answer with your own word ( 200 words )

Question