Proposal for a Merger or Acquisition of Berkshire Hathaway with a Target Company

• There are two parts for this assignment. NO need for an introduction or conclusion. Please only focus on the two tasks (main analysis). Also please separate your answer clearly between these two parts.
• My chosen company is Berkshire Hathaway, but could you please suggest me with the target company that I should acquire and that is undervalued. See Task one for more details.
• There are lists of companies which the writer could choose from down below the pages.

1. 2000 words Proposal for a merger or acquisition (lecture 7) of your chosen company (Berkshire Hathaway) with a target company which you identify which should be cross boarder and therefore contain an international aspect to the transaction. The purpose of this task is to allow you to demonstrate your understanding of a range of the key topics you have learned over the duration this course, including: portfolio theory, capital asset pricing model, cost of capital, capital structure, company valuation methods and the topic of merger and acquisition.

The main focus of the coursework task is to identify a target company which you considered undervalued or where you consider there to be synergies between your chosen company and the target company, such as by combining you increase revenues and/or reduce expenses. After laying out the motives for the merger or acquisition you will then be asked to forecast the value of your company pre and post merger or acquisition based your forecasted benefits and using this information to propose a maximum offer you will make to the target company. In the final aspect of the report, you will discuss whether you plan to make a cash offer or share offer and consider how this will impact your capital structure and then calculate the key financial ratio metrics to demonstrate to your shareholders that your proposed merger or acquisition will generate shareholder value.

2. 1000 words for the academic essay critiquing the challenge of integration. You will be asked to critique one aspect of your merger or acquisition which you foresee to be problematic in terms of integration from an academic perspective debating the literature, with a word count limit of 1000 words. You will be asked to put together a short critique of your merger or acquisition proposal from an integration perspective. The purpose of this task is to introduce an academic aspect to the task and reflect upon the evidence to consider where your merger and acquisition might fail. Please use the materials from the lecture and readings.

The ability to create from what you have learned is generally regarded as the highest form of understand under Bloom’s (1956) famous taxonomy of learning, this task has been chosen because it combines various aspect of what you have learned. By asking you to ensure your target company is cross border, this will bring in the international aspects and allow you to demonstrate learnings from other courses.

Your word count is set at 2000 words for the merger / acquisition proposal and 1000 for the academic essay critiquing the challenge of integration, with flexibility go a maximum of 10% over the word count. This word limit also excludes diagrams, tables, headings and references.