Financial Management Name Professor Course Date Introduction: This is a merger between 2 companies which are Anheuser Busch and Inbev. These are two of the largest brewing companies by revenue and together they make a global brand as they brew some of the most sold beers for example Budweiser, bud light, and skol…
It is considered as the largest and leading company that brews perfected beer with a volume of 49.2% share of beer sales (Anheuser-Busch InBev, 2008). In terms of volume of brewing it was considered as third in the world’s leading distributors of beer before it was acquired by In Bev in 2008 July and the merger was completed in November 2008. Based on revenue it was considered as the top notch in its industry. It operates 12 branches (breweries) in the United States of America and 17 other branches overseas. The products best known are Budweiser, Busch, Michelob, Natural light, Ice. In Bev: In Bev on the other hand was the second largest brewery in the world. While its core business is beer, it also deals in the soft drink market as well. It is a merger of Am Bev and Interbrew. Its headquarters was in Leuven, Belgium where Anheuser Busch is now located. It had approximately 86,000 employees who managed the day to day activities like production and supply of finished products (beer and soft drinks) around the world (Anheuser-Busch InBev, 2008). Before the merger with Am Bev, Interbrew was the third largest brewing company in the world by volume. In Bev had many operations in over 30 countries across the Americas, Europe and Asia pacific. Description of merger The merger between Anheuser Busch and In Bev created the global leader in beer followed by SAB Miller Company. It is also one of the top five Companies that produce commercial products like beer. In Bev was the second largest brewer in the world while Anheuser Busch was the largest brewing Company in the United States of America and also had the highest revenue or returns in investment (Anheuser-Busch InBev, 2008). Type of merger: This merger is a vertical merger or acquisition due to the fact that Anheuser Busch and In Bev are in the same level of operation, production and organization. The two companies also produce similar products like Budweiser. In Bev and Anheuser Busch were in the same production level because they produced many beer types resulting in a vertical merger. The merger amid the 2 organizations is a responsive merger, acquisition, takeover because it has a situation in which a target company’s management and board of directors agree to be acquired by another Company. In this case In Bev taking over Anheuser Busch. Here a public offer of stock or cash was made by In Bev and the board of directors of Anheuser Busch Company was publicly approved the buyout terms. They may be subject to regulatory or shareholder approval. Competitors: The major competitors that Anheuser Busch in Bev faces are the following: - Carlsberg, Heineken, SAB Miller Carlsberg is the fourth largest Company in the world. They have major markets in Asia and Europe with Northern Europe acquiring the largest markets of beers produced by Carlsberg. Their products or brands are many, over 500 to be exact (McShane, Sampson and Restrepo, 2008). Carlsberg does not only deal with beer alone, it also deals in soft drinks like coca cola whose production occurs in Denmark and Finland. Beer and soft drinks are the major products that help Carlsberg in achieving their desired returns in investment thereby realizing their initial objectives. These are some of the factors that help this thriving Company attain the fourth position when it comes to production and supply of products around. Brands differ significantly in ...
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“Financial Management Term Paper Example | Topics and Well Written Essays - 2000 Words”, n.d. https://studentshare.net/finance-accounting/93086-financial-management.
ales out) are 365/4.21 = 87days Payables = purchases divide payables = 378000/129000 =2.93 Therefore number of days to clear payables (Day payables out) are 365/2.93 = 124days Inventories= cost of goods sold divide inventories = 1018000/332600 =3.06 Therefore number of days to clear inventory (Day inventory out) are 365/3.06 = 119days Cash conversion cycles equals = Day sales out + Day inventory out - Day payables out = 87+119-124 = 82days Concerns: Work in progress may lead to more days for clearing the work cycle at higher rates than 70% The working capital cycles has a difference of 8days hence the company should review the discrepancies and do necessary corrections.
Non-profit organizations are NGOs, universities and child homes that spend their surplus to achieve their ultimate goals (Howell, 2011). These organizations are largely funded by donations and charitable methods, as the activities and goals which these organizations fulfill are largely non-profitable and are aimed at aiding the less fortunate.
Introduction – Meaning and Importance of Ratio Analysis A ratio is a mathematical relationship between two related terms expressed in a quantitative form. When a ratio is calculated between two accounting figures from the financial statements of a business enterprise, i.e.
Use of Real Options Theory in Financial Management/Modeling
It goes further to identify the activities that facilitated my understanding of the real options theory and other practical application matters connected to the real option theory. The Need for the Real Options Theory The Real Options Theory is a finance theory that is increasingly being used by top-level management and people charged with the governance of businesses to take good financial decisions.
countries (the United Kingdom, the United States, Canada, Germany, Japan, France and Italy) began in right earnest from this time and it resulted in sharp growth of the overall size of financial superstructure. This rapid growth can be gauged from the simple fact that the total
When a ratio is calculated between two accounting figures from the financial statements of a business enterprise, i.e. income statement (Profit & Loss Account), statement of financial position (Balance Sheet) and a statement of changes
It goes further to identify the activities that facilitated my understanding of the real options theory and other practical application matters connected to the real option theory.
In every business, the need to estimate the future