Question: Initial position: The management of Austrian PIERER MOBILITY AG intends to acquire 100% of Dutch ACCELL Group retroactively as of January 1, 2022. As an

  • Initial position: The management of Austrian PIERER MOBILITY AG intends to acquire 100% of Dutch ACCELL Group retroactively as of January 1, 2022.
  • As an external M&A advisor you are engaged to develop an attractive financial structure of the deal. Create the financial structure of the deal and maximise ROE for year 1 (2022) presuming
    • PIERER places a counter offer to the bid of KKR at the same offer price
    • PIERER's financial strategy stipulates a minimum equity ratio of 35%.
    • Possible acquisition loan: no repayment in year 1, interest rate , financial cost 2021
    • Future development of both companies corresponds with the latest financial statements (FC 2022 = A 2021).
    • Synergies: Sales: +5% Cost: -3%

Key criterias

Pierer 2021

ACCELL 2021

Net Debt

189,9

216,89

in m

Equity

765,6

456,15

in m

Debt to Capital ratio 2021

19,87%

32,23%

  • Purchase Price ACCELL

ACCELL shares outstanding: 26 829 592

ACCELL share price: 58

Market capitalization:1 556 116 336

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

This case incident can be used to introduce students to some of the major issues and theories in organizational behaviour. The first question is designed to flesh out various topics in organizational...

Q:

Initial position: The management of Austrian PIERER MOBILITY AG intends to acquire 100% of Dutch ACCELL Group retroactively as of January 1, 2022. As an external M&A advisor you are engaged to...

Q:

Initial position: l The management of Austrian PIERER MOBILITY AG (ex KTM INDUSTRIES) intends to acquire 100% of Dutch ACCELL Group retroactively as of January 1, 2022. l As an external M&A advisor...

Q:

Initial position: The management of Austrian PIERER MOBILITY AG (ex KTM INDUSTRIES) intends to acquire 100% of Dutch ACCELL Group retroactively as of January 1, 2022.(Balance sheet per 31.12.2021) As...

Q:

1. Compare and contrast ZF and TRW. Based on ZFs motives for making this acquisition, what specific challenges do you think might arise during the integration process? 2. What megatrends in the...

Q:

Would one characterize ZFs acquisition of TRW as horizontal, vertical or related? Please explain your answer. What did ZF hope to gain through buying TRW? Why did ZF acquire TRW rather than develop...

Q:

C-248 CASE 19 ZF Friedrichshafen's Acquisition of TRW Automotive: Making the Deal Introduction by market consolidation and a focus on innovation, with The case study "ZF Friedrichshefen's Acquisition...

Q:

This text was adapted by The Saylor Foundation under a Creative Commons Attribution-NonCommercial-ShareAlike 3.0 License without attribution as requested by the work's original creator or licensee. 1...

Q:

Overview Your team works for a renowned FX trading company, Xhi-Trade. The company specializes in trading major currencies such as Australian dollar (AUD), United States dollar (USD), Japanese Yen...

Q:

TANGLEWOOD CASEBOOK for use with STAFFING ORGANIZATIONS 5th Ed. Kammeyer-Mueller 1 TANGLEWOOD CASEBOOK To accompany Staffing Organizations, fifth edition, 2006. Prepared by John Kammeyer-Mueller...

Q:

i need help from section 3 part A I have already posted this and you asked me to post under advanced option Assignment Tier 1 Financial Planning (Tier1FPPA_AS_v1A3) Page 2 of 92 Student...

Q:

Forta Manufacturing just reported Free Cash Flow (FCF) of $60 million, which is expected to grow at 4% indefinitely. The company has 20,000,000 shares of common stock outstanding, $275 million in...

Q:

A wave on a string is described by y(x, t) =Acos(kx - wt). (a) Graph y, vy' and ay as functions of x for time t = 0. (b) Consider the following points on the string: (i) x = 0; (ii) x = /4k; (iii) x...

Q:

EAST WEST COLLEGE 3 8 8 0 2 9 Street NE CALGARY, ALBERTA, T 1 Y 6 B 6 TO: New Gen Limited INVOICE 1 2 - 3 4 Southview Street Airdrie, Alberta, December 1 , 2 0 XX Attention: I. MacFarlane 4 0...

Q:

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...