Soda company merger estimation case

Case Mergers & Acquisition
Anonymous A asked on Jun 30, 2018

Hi,

three soda franchise companies in Europe consider a merger due to decreasing profitability. Reasons for the profitability loss are new small competitors and the anti-sugar trend. They offer a range of products, but not each company offers all products (e.g. company A offers 1 and 2, but not the 3rd product). They operate in different markets in Europe, but those are culturally similar. The revenue for all three is in total 30 Billion (equally distributed), 20.000 employees (equally distributed). Profitability is 0.30.

Would you recommend a merger or not? Choose a KPI and estimate a number that you use to support your recommendation.

Btw: You get no additional data. Estimate everything you need.

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on Apr 29, 2021
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