Case Study

The report should assist all the shareholders understand and establish if the acquisition is worth investing in. This report presents the valuation of YVC for the proposed acquisition by TSE, who will acquire the majority shareholding (?). The main objective is to ensure that we account for every value of YVC and their brighter future prospects, as well as to identify the best price to sell YVC. In addition, the following objectives have also been identified in the case study:Acquisition of Yeats Valves by TSE International CorporationCreation of shareholders wealth for YVCTSE Financial stabilityYVC brighter future prospectsGrowth strategy for YVCW.B. “Bill” Yeats, chairman, CEO and founder of YVC is about to retire and he is concerned about what’s going to happen to YVC going forward. His major concern is what will happen to the shareholders value as his top management is very specialised compared to the multi-skill business management person that YVC needs to run successfully. In addition, a number of other compelling reasons existed besides his retirement and the problem of management succession. i.e. the company needed a deep-pocketed partner in order to expand and to bankroll more research and development projects; YVC also believed that the company would benefit from gaining access to a large marketing and distribution networks and lastly as the company continued to grow, it needed to gain more expertise on high-volume manufacturing.  2.STRATEGIC ANALYSIS2.1Rationale for MergerStrategic reasons for the merger, i.e., reasons why the merger would be good for YVC. What are the synergies to be gained? Below are the ones I had picked up from the case. Please expand on them. ▪Succession issue▪Need for deep pocketed partner to finance expansion and more research (R&D Projects)▪Need to acquire or gain production know-how for high volume manufacture. YVC currently does not have this expertise. ▪Consolidation taking place within industry...