- 15 Marks
FM – May 2018 – L3 – SC – Q6 – Mergers and Acquisitions
Key factors for target selection and consideration form in acquisition decisions for Okpara Plc.
Question
Okpara Plc. is a large publicly quoted company in the eastern part of Nigeria. It operates in the home appliances industry with significant market share. In a recent strategy meeting, the directors decided to pursue aggressive growth through mergers in other parts of the country and along the ECOWAS sub-region.
Required:
Prepare a report to the Board of Directors of Okpara Plc. to address the following matters:
a. Six factors to be considered when choosing a target for acquisition.
(9 Marks)
b. Four factors which a bidding company should take into account in deciding the form of consideration to be offered.
(6 Marks)
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