Question: 1. What are the basic elements to consider in the case of Mergers and Acquisitions? 2. How can you convince your shareholders about a


1. What are the basic elements to consider in the case of Mergers and Acquisitions? 2. How can you convince your shareholders about a possible Merger? 2. Hilton Hotel is considering, in the annual shareholder's meeting to discuss the possible merger They consider 3 ways 100% cash Cash Dividend Stocks The number of shares outstanding is 300,000 You prefer to receive Cash but you have to choose 1 out of the 3 strategies they use. Data is in the excel file Which method is the best for the acquiring company and which is the best for the one acquired. Revenues Expenses EBT tax Net Profit 100% cash 156430.6 122015.78 34414.42 10324.046 24089.974 Cash Other Assets Total Assets Liabilities ** Capital + Liabilities shares 300,000 Capital 174614.83 174615.75 Retained Earnings 24089.974 24089.974 Total Capital 198705.2 198705.72 45517.82 91035.64 230299.6 230299.6 275817.82 321335.24 300,000 77112.22 77112.22 275817.82 275817.94 0.9193927 1.0711175
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