This case is composed of a scenario where there is a larger facility management company which is going to be acquired by a medium-sized facility management company due to its well-known services and technical expertise. This acquisition will help the acquirer to enter into new industries within the existing home market. The case determines the value of this acquisition opportunity and selecting the right amount for the transaction. It examines the relation between financing and corporate investment, and asked for discussions about capital structure decisions.
This case can be used in an undergraduate finance course that covers mergers and acquisitions. This case could be helpful for the students of the MBA first year specializing in Financial strategy and Corporate finance or in the second year courses specializing in Advanced Corporate Finance and Mergers & Acquisitions.
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