Finance Management Essay

1967 WordsApr 8, 20158 Pages
TABLE OF CONTENT 1.0 Introduction………………………………………………………………………..2 2.0 The synergies that Burger King hopes to achieve from the merger……………….2 3.0 The synergies that Tim Horton’s hopes to achieve from the merger…………..…..3 4.0 Tax inversion in relation to U.S. corporations and present arguments why this merger may not be motivated by tax inversion…………………………………..……4 5.0 Compare the quarterly performance of the two companies in terms of revenue trend, earnings growth and price-earnings ratio over the past 2 years…………..…….5 6.0 Conclusion…………………………………………………………………………7 List of References………………………………………………………………….…..8 1.0 Introduction This report is to discuss the case study of Burger King’s Mergers and Acquisitions of Tim Horton, there are four questions in this report, the author will analysis 1)the synergies that Burger King hopes to achieve from the merger; 2)the synergies that Tim Horton’s hopes to achieve from the merger; 3)t ax inversion in relation to U.S. corporations and present arguments why this merger may not be motivated by tax inversion; 4)compare the quarterly performance of the two companies in terms of revenue trend, earnings growth and price-earnings ratio over the past 2 years. 2.0 The synergies that Burger King hopes to achieve from the merger. The purpose of Burger King acquisition of Tim Horton's is to expand the scale, product output, sales, purchase of raw materials and other aspects of a certain degree of market monopoly, thereby enhancing their market power. In order to ease the pressure of market competition, Burger King, M & A can be a competitor in the market under its own control, increased industry concentration, improve the industrial structure, and enhance the monopoly control of the business environment. When an industry is controlled by one or a few companies can effectively reduce the intensity of

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