Verified Document

Aquisition Proposal Acquisition Analysis Financial Research Proposal

TNT however, needs to acquire Fastpack. As mentioned above, it is quite difficult for foreign companies to enter the Ruritanian courier market. The best way of succeeding would be to acquire a well-known local company. Therefore, it might be a better solution for both companies, and especially for Fastpack, to decide upon a merger between the two companies rather than on an acquisition of Fastpack by TNT.

Initial Valuation of the Company Acquired by TNT

Objective: the purpose of the acquisition of Fastpack where TNT is concerned consists in entering the Ruritanian courier market. As mentioned above, the only solution that guarantees success for foreign companies entering Ruritania's courier market consists in acquiring a local, well-positioned courier company like Fastpack. Also, this would help TNT to consolidate its position on the international market.

The environmental context

The current macroeconomic conditions recommend this acquisition of a courier company by TNT. The Ruritanian courier, express, and parcel delivery market is in full development process. This is a great moment for investing in this market. There is still room for new investors on this market and TNT should exploit this opportunity.

The internal context

Fastpack is organized in a very flexible manner. This allows the company to move fast on the market and to satisfy as many customers and as fast as possible. Such a flexible organization allows for an easy takeover by TNT.

Fastpack is owned by individuals. This would make the transition easier and the acquisition could take place in a shorter period of time than usual. The objectives of the company management includes: upgrading the existing billing system, developing billing applications for branches, developing software for settlement with branches, developing software for settlements with couriers, introducing electronic archiving, supporting the customer data base (Executive Summary, 2008).

These objectives of the company's actual management do not interfere in any way with TNT's objectives. Even more, this would help TNT to attain its objectives regarding the Ruritanian courier...

Entering the Ruritanian market would be a great opportunity for TNT to expand its activity worldwide. If TNT were to acquire a solid position in this country, it would allow the company to expand its business in Ruritania's neighboring countries in Eastern Europe.
Ruritania present tremendous growth opportunities regarding the courier market. TNT would have difficulties on entering this market as a foreign company. This is why TNT needs to acquire Fastpack. By acquiring Fastpack, TNT is acquiring its position on the Ruritanian market. Even more, TNT would benefit on international level from this acquisition, given the 5% market share owned by Fastpack on the international market.

This acquisition would follow a trend established in the global economy, since "the level of cross-border acquisitions doesn't seem to be related at all to the level of various currencies. The number and value of international transactions doesn't rise or fall depending on whether the dollar is weak or strong. Companies usually pursue cross-border acquisitions for strategic and competitive reasons" (Platt, 2004).

This acquisition is recommended in order to avoid problems like rival bidders, cultural and language barriers that can generate uncertainty, and other subjective matters that affect negotiations in such situations (Finkelstein, 2008). If TNT does not start the negotiations for acquiring Fastpack, it is expected that other bidders that want to enter the Ruritanian courier market will manifest their interest in Fastpack, which will probably result into more difficult negotiations.

Reference List

Summary Balance Sheets (2008). Retrieved January 22, 2009.

Executive Summary (2008). Retrieved January 23, 2009.

Platt, Gordon (2004). Cross-Border Mergers Show Rising Trend as Global Economy Expands. Global Finance. Retrieved January 23, 2009 at http://findarticles.com/p/articles/mi_qa3715/is_200412/ai_n9466795.

Finkelstein, Sydney (2008). Cross Border Mergers and…

Sources used in this document:
Reference List

Summary Balance Sheets (2008). Retrieved January 22, 2009.

Executive Summary (2008). Retrieved January 23, 2009.

Platt, Gordon (2004). Cross-Border Mergers Show Rising Trend as Global Economy Expands. Global Finance. Retrieved January 23, 2009 at http://findarticles.com/p/articles/mi_qa3715/is_200412/ai_n9466795.

Finkelstein, Sydney (2008). Cross Border Mergers and Acquisitions. Dartmouth College. Retrieved January 23, 2009 at http://mba.tuck.dartmouth.edu/pages/faculty/syd.finkelstein/articles/Cross_Border.pdf.
Cite this Document:
Copy Bibliography Citation

Related Documents

Proposal to Philanthropists
Words: 1947 Length: 7 Document Type: Business Proposal

edit of Smithers proposal Public description of your project? The Aboriginal Healing Foundation was thus established in 1998, originally with an eleven-year mandate scheduled to expire on March 31, 2009. This time frame reflected the original establishment of the foundation as part of a governmental policy of restitution for past abuse and its intergenerational effects: it was supposed that the conditions and the psychological welfare of the affected portion of the

Proposal for Effective Pre-Screening Procedures
Words: 1866 Length: 4 Document Type: Research Proposal

Pre-Employment Screening Procedures Mr Jonathan Lucas Jessop (Director) From: Ms Kaylinn Elizabeth Jackson (Recruiter and Personnel Manager) Re: The Importance of Effective Pre-Employment Screening at IT People. Dear Mr. Jessop Nobody knows better than you and I the challenges we face today in terms of personnel recruitment and retention. Indeed, today's demographic, economic, and technological developments have created a recruitment base fraught not only with opportunities, but also with challenges. It is far easier

Proposal and Justification for Compensation Package
Words: 1503 Length: 5 Document Type: Proposal

Negotiation Final ProjectVarilie GarnerDHA804 Negotiations and Conflict ManagementVirginia University of LynchburgDr. HammondAugust 8, 2023Compensation Package Proposal and JustificationJob Offer TableCompensation ItemProposed AmountCompensation$105,000Bonus$30,000Relocation Allowance$10,000Stock Options10,000 shares at $2.70 per shareContinuing Education Stipend$5,000According to Glass Door (2023), �The estimated total pay for a Director of Business Operations is $193,928 per year in the United States area, with an average salary of $132,368 per year.� Bonuses are often tied to performance, and this

Proposal Review
Words: 751 Length: 2 Document Type: Essay

thousand characters (E1 vs. G1 proposals) excluding the title and the reference pages. Likewise, G1-3 is approximately three thousand three hundred characters excluding the title and the reference pages. Both proposals are double spaced as it is the requirement in APA formatted papers. Generally, the two proposals have adhered to APA formatting guidelines. They have a title page, the main text, and the references page. The main text is aligned at

Proposal for a New Bowling Sports Team at My College
Words: 1328 Length: 5 Document Type: Business Proposal

proposition describes the description of the requested new sports team: The bowling team. The school lacks a proper bowling representation, and the following document will explain the estimated costs, staffing requirements, locations, timetable, security issues, equipment and amenities, hours of operation, and the consequences of this fine university hosting a bowling team for the following seasons to come. The objective of this proposal is to provide the university with information

Proposal for a Marketing Plan for a New English Language School in...
Words: 535 Length: 2 Document Type: Marketing Plan

Marketing Plan Proposal English as a Second Language (ESL) School in China Mission Statement -- Striving to provide accessible, high-quality, and affordable ESL education to individuals in China, with an aim to prepare students for education and work opportunities both within China and abroad. Team Members -- The school will be staffed by a principal, a vice-principal, a public relations consultant, as well as several teachers. Al staff will be recruited from within

Sign Up for Unlimited Study Help

Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.

Get Started Now