BF 3305 INTEGRATED CASE STUDY

SINGLE TASK QUESTION:

WORD LIMIT 1,500 WORDS NOT INCLUDING HEADINGS, SUB-HEADINGS, TABLES CHARTS AND APPENDICES

Prepare a response to the request for an additional briefing report from Raj Daruwalla given below:

I thank you for your recent briefing report, it was well received.

I recently supplied you with a forecast and valuation prepared by Dan Cork’s finance team and their independent accountants.

I now require a second briefing report from you, including specific appendices, for me to discuss with my board.

The briefing should be seen as a basis for discussions that will lead to additional data analysis and subsequent due diligence work should we proceed with the proposed acquisition of Vinamour. The briefing report should provide an analysis of the opportunities and risks of a potential takeover of Vinamour by Viniculture plc.

Specifically the briefing report should include:

(i) Your views on the opportunities and risks for our shareholders should the takeover go ahead at an acquisition price of £70 million referring specifically to the different business model of Vinamour

(ii) A proforma statement of financial position for the combined group at acquisition based upon the information and data I have already given to you with analysis of the financial position of the combined group as revealed by the statement

The appendices should incorporate:

(a) A selective and focused five year summary of the most important financial and operating data for Vinamour that we can compare to the data you presented to us previously for Viniculture plc

(b) Calculations to support the pro-forma statement of financial position of the combined group at acquisition