Shld

In: Business and Management

Submitted By benn4051
Words 2200
Pages 9
ACCT 600 MAFM CAPSTONE
BECAUSE OF THE RISKS CAN COSTCO ACQUIRE THE #3 KMART?

ABSTRACT
The retail business is very competitive. Because the retail industry provides products and or services for the needs, wants, and sometimes feelings of the consumer it can be hard to determine what they like and don’t like. Moreover, with the economy, which by the way affects all businesses, you just do not have an exact science on how things will turn out. Industry businessman, economist etc. can only make assumptions based on occurrences. So, if you are in a business to make a profit, and satisfy stakeholders you need to have a plan. Sometimes the plan calls for mergers and acquisitions. Mergers and acquisitions can have a positive and/or negative effect. “According to a KPMG study, 83% of all mergers and acquisitions failed to produce any benefit for the shareholders and over half actually destroyed value.”(http://www.itapintl.com/...the-impact-of), to be a good CFO you must do the research to determine if acquiring another company will be beneficial. This report will identify the risk factors of the target acquisition company Kmart and the risk factors present in the parent company Costco. Our team will then show how these risks can be mitigated.


BECAUSE OF THE RISKS CAN COSTCO ACQUIRE THE #3 KMART?
KMART RISKS/MITIAGATION
Many investors such as Costco may be unaware of all the risks associated with investing in a specific company. Providing current and future investors with risk factors allows investors to evaluate a company and make an informed investment decision.
Kmart’s operations and financial results are subject to various risks and uncertainties, including those described below, that could significantly affect the Costco’s judgments in acquiring the business.
Here are few risks factors which Kmart may face with Costco. The first being…...

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