In August 1998, Kerry King, President and Chief Executive Officer of Ultratech, watching with great interest to the changes in the technology industry. Ultratech corporation had the opportunity to engage in strategic mergers that would make the combined company the undisputed leader in its market segment. The deal, multibillion deal made a lot of sense Kerry, his board of directors, and Ultratech outside financial advisors, with one exception. As a result, technical accounting issues, accounting for the combination were not available for the merger. When purchasing accounting, Kerry said that a significant amount of goodwill will be created and amortized over future fiscal year, actually "destroy" the reported earnings of the combined company. The challenge for Kerry was there to complete the merger and the risk of profit "damages" or give another great opportunity pass. Kerr solution can profoundly affect the future of their company and fiber optic telecommunications industry. "Hide
by Mary E. Burt, Ramez Toubassy, Andrew Baumbusch Source: Stanford Graduate School of Business 27 pages. Publication Date: April 1, 1999. Prod. #: A172A-PDF-ENG
Related Case Solutions & Analyses:
WorldCom Inc.: Two Views
New York City Audubon Society
Pacific Restaurant Supply Ltd.
Motor City: A Disruptive Business Model (B)
Disclosure Dilemma: Financial Reporting of Contingent and Environmental Liabilities
California Pizza Kitchen
Financial Performance Measurement for the 21st Century
Outdoor Living Spaces Company: Financial Statement Overview
Bidding for Antamina, Spanish Version
Transfer Pricing for Aligning Divisional and Corporate Decisions
