In the first part, you are asked to analyze the IPO deals assigned to you randomly, and fill in the related properties of these deals. This part will have 30% weight in your total homework score. You can find below a sample table that you are asked to fill in. Your assignments are attached in the file named “ipo-deals.xlsx” Company Name Sector Deal Size ($ / Euro) Underwriter Date of the IPO IPO Price Current Price France Telecom Telecommunication $ 7.3 Billion Merrill Lynch Oct. 6, 1997 187 francs ~ $32 10.48 Eur ~ $12.65
In the second part, you are given the company list of S&P 500 and BIST stock indexes in “index_list.xlsx”. These lists are provided to you as a sample, but you are not restricted with these two indexes, or with any index. You can recommend any other company that is listed/not listed on any stock exchange. For this part of the homework, you are asked to propose a merger of two companies, or an acquisition of one company by any other company, considering the benefit it may provide to any of these companies, and/or the synergy that may come up after the acquisition. You are supposed to fill the following table regarding your proposition: Parent Company Target Company Type of the deal Rationale for the deal Possible Name Sector Definition Mcap Name Sector Definition Mcap Synergies Merger / Aquisition “Achieving synergies is the fundamental rationale for M&As, and it is generally believed that a combination of businesses will create value only if the value of synergies is positive. IBs have become more involved in the kinds of detailed, bottom-up estimations of synergies that are needed to produce a successful transaction. There are synergies when the value and performance of the merged entity are more than the sum of the two original entities taken separately. Synergies can be either revenue or cost synergies, as illustrated by two simple equations: • 2 + 2 = 5. On the revenue side, the goal of the transaction is to cross-sell the products and services of one company to the customers of the other or to develop and sell more products and services or both. • 2 + 2 =3. On the cost side, the combination of two firms permits the reduction of operating costs and expenditures.” https://www.investopedia.com/terms/s/synergy.asp There can be several reasons for generating an m&a deal as the most general ones are listed below. https://investmentbank.com/buy-side-target-list/
