Is it time for apple to engage in M&A

Your recommendation must include the following items: ? Identify and describe your proposed Target ? Describe why the Target fits well with the Acquiror ? Briefly explain what synergies (cost, revenue, etc.) may exist, but do not quantify them ? If the Target is listed, describe what is its current market cap, and what price should be offered to acquire the asset ? Explain how do you recommend the transaction to be structured (cash, share, or both) ? If the acquisition is paid by Cash, please detail whether it can be paid with existing cash balance (document from most recent accounts), with debt, or with a combination of the two

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Help Apple to continue fueling its growth! Apple has experienced a very healthy growth driven by its organic activity and continued innovation. It sits in a huge balance of cash (firepower). The cash balance is increasingly attractive today, given the increased interest rate (increased return for cash) and lower prices for potential Targets. Is it the time for Apple to engage in M&A? Apple 166,89 $ 1221,75% +115,02 5 aos Preapertura: 167,29 $ (10,24 %) +0,40 Cerrados: 27 oct, 5:38:38 UTC-4 USD NASDAQ Renuncia de responsabilidad GS Forecasts 9/23E 9/24E 9/25E 9/22 1 da 5 D 1 mes 6 M YTD 1 ao 5 aos MX. Eventos clave 300% 250% 200 % Revenue ($mn) EBITDA ($ Mn) EBIT ($mn) Net Income ($ mn) EPS ($) 394,32 382,70... 402,39... 430,15... 6.11 130,54 125,44... 133,46... 144,15... 119,43... 113,51 120,91 131,39... 99,803.0 95,820.6 101,32... 109,84... 6.06 6.57 7.34 Consensus EPS ($) 6.09 6.06 6.55 7.18 150 % Dividend yield (%) 0.6 0.6 0.6 0.6 100 % 50 % 0% -50% 2019 | Apple | S&P 500 Samsung Electroni... 2020 Source: Google Finance Ratios and Valuation 2021 2022 2023 9/22 9/23E 9/24E 9/25E PE (X) 25.9 27.6 25.4 22.7 166,89 $ 4.137,23 +115,02 $ 221,75 % +1.414,17 EV/EBITDA (X) 19.3 20.6 19.0 17.2 51,93% EV/SALES (X) 6.4 6.8 6.3 5.8 67.300,00 W +23.150,00 W 52,43 % FCF yield (%) 4.3 3.3 4.3 5.0 Source: Goldman Sachs Equity Research Help Apple to continue fueling its growth! Apple has experienced a very healthy growth driven by its organic activity and continued innovation. It sits in a huge balance of cash (firepower). The cash balance is increasingly attractive today, given the increased interest rate (increased return for cash) and lower prices for potential Targets. Is it the time for Apple to engage in M&A? Apple 166,89 $ 1221,75% +115,02 5 aos Preapertura: 167,29 $ (10,24 %) +0,40 Cerrados: 27 oct, 5:38:38 UTC-4 USD NASDAQ Renuncia de responsabilidad GS Forecasts 9/23E 9/24E 9/25E 9/22 1 da 5 D 1 mes 6 M YTD 1 ao 5 aos MX. Eventos clave 300% 250% 200 % Revenue ($mn) EBITDA ($ Mn) EBIT ($mn) Net Income ($ mn) EPS ($) 394,32 382,70... 402,39... 430,15... 6.11 130,54 125,44... 133,46... 144,15... 119,43... 113,51 120,91 131,39... 99,803.0 95,820.6 101,32... 109,84... 6.06 6.57 7.34 Consensus EPS ($) 6.09 6.06 6.55 7.18 150 % Dividend yield (%) 0.6 0.6 0.6 0.6 100 % 50 % 0% -50% 2019 | Apple | S&P 500 Samsung Electroni... 2020 Source: Google Finance Ratios and Valuation 2021 2022 2023 9/22 9/23E 9/24E 9/25E PE (X) 25.9 27.6 25.4 22.7 166,89 $ 4.137,23 +115,02 $ 221,75 % +1.414,17 EV/EBITDA (X) 19.3 20.6 19.0 17.2 51,93% EV/SALES (X) 6.4 6.8 6.3 5.8 67.300,00 W +23.150,00 W 52,43 % FCF yield (%) 4.3 3.3 4.3 5.0 Source: Goldman Sachs Equity Research

Answer rating: 100% (QA)

Proposed Target A leading augmented reality AR technology company specializing in developing innovative AR hardware and software solutions Fit with Ap... View the full answer