Fi561 You Decide

You purpose Page 1 FI561 Mergers & Acquisitions Week 3 Scenario Summary This is found on Mercks Acquisition of Medco geek 5. 1, pp. 124-125. Your Role/Assignment You are the moderate and CEO of Merck. contract a cheeration to the come along of Directors of Merck & Co. regarding this achievement based on the recommendations of the three associates and your own analysis. You are the Chairman and straits decision foxr incumbent of Merck & Company, and you testament consider the final yes or no recommendation to the Board of Directors of the friendship.You are listening to the advice of various division heads regarding this acquisition. Based on your evaluations and additional analysis of the recommendations of your three associates, make your recommendation to the Board of Directors. What will you recommend? Yes? No? Yes with some conditions? What are the reasons for your recommendation? Activity put out an 8-10 page cover (double-spaced) of written analysis, includi ng tables of pecuniary calculations. Key Players Key Players Image Title/Role/ roughage Script Text & Audio Chief Operating OfficerIm implicated about synergy and consolidation issues between our highly research-oriented development of pharmaceutics here(predicate) at Merck, and a prescription medicine market company like Medco. I am concerned that the cultures and operations of the two companies arent going to mix well, and that this subscribe to would result in an expensive failure. Executive Vice President, Sales & Marketing Im solely for this acquisition It will open saucily marketing leverage opportunities in the Managed Care market. Medcos marketing database will create market involution opportunities.This is the perfect answer for the current competitive environment, where other pharmaceutical manufacturers are acquiring drug marketing companies. You Decide Page 2 Chief Financial Officer This is my concern I want to make sure that Merck pays a premium for Medco at $6. 6 million dollars. The combination of the two companies will forthwith result in increase in Earnings Per mete out for the combination vs. Merck as a stand- solo company. Although, Im still concerned about continuing the growth of the stock price of Merck afterward the target company is acquired.Grading Rubric Category Points Description accord 55 Demonstrate a backbreaking grasp of the problem at hand. Demonstrate understanding of how the blood concepts apply to the problem. Analysis 55 devote original thought to solving the descent problem. Apply concepts from the var. material correctly toward solving the business problem. Execution 25 Write your answer clearly and compactly using strong organization and congruous grammar. Use citations correctly. Total 135 A quality paper will meet or legislate all of the above requirements.Fi561 You DecideYou Decide Page 1 FI561 Mergers & Acquisitions Week 3 Scenario Summary This is based on Mercks Acquisition of Medco Cas e 5. 1, pp. 124-125. Your Role/Assignment You are the Chairman and CEO of Merck. Make a recommendation to the Board of Directors of Merck & Co. regarding this acquisition based on the recommendations of the three associates and your own analysis. You are the Chairman and Chief Executive Officer of Merck & Company, and you will make the final yes or no recommendation to the Board of Directors of the company.You are listening to the advice of various department heads regarding this acquisition. Based on your evaluations and additional analysis of the recommendations of your three associates, make your recommendation to the Board of Directors. What will you recommend? Yes? No? Yes with some conditions? What are the reasons for your recommendation? Activity Write an 8-10 page paper (double-spaced) of written analysis, including tables of financial calculations. Key Players Key Players Image Title/Role/Character Script Text & Audio Chief Operating OfficerIm concerned about synergy and integration issues between our highly research-oriented development of pharmaceuticals here at Merck, and a prescription medicine marketing company like Medco. I am concerned that the cultures and operations of the two companies arent going to mix well, and that this deal would result in an expensive failure. Executive Vice President, Sales & Marketing Im all for this acquisition It will open new marketing leverage opportunities in the Managed Care market. Medcos marketing database will create market expansion opportunities.This is the perfect answer for the current competitive environment, where other pharmaceutical manufacturers are acquiring drug marketing companies. You Decide Page 2 Chief Financial Officer This is my concern I want to make sure that Merck pays a premium for Medco at $6. 6 billion dollars. The combination of the two companies will immediately result in increase in Earnings Per Share for the combination vs. Merck as a stand- alone company. Although, Im still conc erned about continuing the growth of the stock price of Merck after the target company is acquired.Grading Rubric Category Points Description Understanding 55 Demonstrate a strong grasp of the problem at hand. Demonstrate understanding of how the course concepts apply to the problem. Analysis 55 Apply original thought to solving the business problem. Apply concepts from the course material correctly toward solving the business problem. Execution 25 Write your answer clearly and succinctly using strong organization and proper grammar. Use citations correctly. Total 135 A quality paper will meet or exceed all of the above requirements.