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M&a Individual Assignment

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Submitted By jasonhuangeu
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Key point of the deal achieve
Mega Industries will pay 100.5million GBP in cash for Mr. Van Meerden and keep
Mr. Van Meerden, Mr. Oosterhouse and Mr. Witt in their current roles and hiring the culture consultant .Before the completion of the purchase, all financial statements must be audited by a third party and Delft will be responsible for any undisclosed liabilities that Mega Industries discovers after the sale, including a 20% penalty.
The quality evaluation
In investment perspective, 100.5 million GBP is a good deal due to the Europe belt market is worth far more than 100.5million GBP. This acquisition can help Megaindustry improve his market share in Europe and fit to current Megaindustry’s globalize strategy. To achieve this strategy, maintain the production, sales and operation is important. Keep Mr. Wit can keep production line working, keep Mr. Oosterhouse can maintain the relationship with the key buyer in Europe and keep Mr. Van Meerden can insure the family business style operate well. However, they can just take money and run away, to avoid this harsh situation, RBS should make more deal related to knowledge sharing and data transferring. Specifically, after knowledge sharing, Megainsdustry can still run Delft without these 3 people.
The business culture in Japan and Europe is quite different, hiring culture consultant may help those 2 companies avoid the culture clash when processing further takeover.
The protection in this contract is weak. Although RBS require Delft must audited its financial statements to avoid the window-dressing issue, the accurate evaluation of inventory, fixed asset and pollution cannot be done only through auditing financial statement, RBS should inquire Mr. Van Meerden give certain guarantee of the value of the current asset, fixed asset and intangible liability, the alternative way is that Mega can cooperate with the

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