Discuss how the proposed merger or acquisition will impact your company. Using the knowledge you...

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Discuss how the proposed merger or acquisition will impact your company. Using the knowledge you have gained on valuation, you can finish your target company (Twitter Inc.) analysis by determining its value. Then, you will discuss how the target company will bring firm value to your organization (Alphabet Inc.), as well as any negative impacts the merger or acquisition could cause. You will also determine the best way to finance the deal. You will consider how your deal structure will affect the capital structure of your organization, and what impact the deal will have on additional risks associated with mergers and acquisitions that may affect firm value.
Explain the potential impacts of merging (Alphabet Inc - Google Inc. with Twitter Inc.) with or acquiring the target company. Consider capital structure and cost of capital when formulating a deal structure
the following critical elements must be addressed:

II. Target Company Analysis: F. Assess the last five years of the target company’s financial history for determining its firm value.III. Financial Impacts: A. Explain how the target company will bring firm value to your organization by providing specific examples of economies of scale, cost reductions, or increase in revenues. B. Explain the negative financial impacts that mergers and acquisitions could have on your organization. Support you explanation using examples related to your organization’s objectives. C. Determine if your organization will finance a deal through the use of cash, stock, or debt. Explain how your selection is most appropriate for mitigating the financial impacts mentioned previously. D. Based on the above deal structure, discuss additional risks to your organization and explain how this deal structure will reduce their impact on firm value. Consider political, social, taxation, HR, or cultural risks.

Preeta · Accepted Answer

The following discussions have been made on the acquisition of Alphabet Inc - Google Inc. with Twitter Inc. The analysis has been made from the perspective of Alphabet Inc - Google Inc. which is going to acquire Twitter Inc. 
II. Target Company Analysis:
The net worth of the company can be found out to check the value of a company. In this case, the value of Twitter Inc will be found (Reddy, Rajesh & Reddy, 2011). Net worth is also known as shareholder’s equity. Annual report of Twitter was checked for the past five years to get the shareholder’s equity or net worth of the company to understand its value. 
	Year
	Net Worth ($ billion)
	2019
	8.70
	2018
	6.81
	2017
	5.05
	2016
	4.60
	2015
	4.37
As it can be seen from the table, the value of the company have improved over the time and currently it is worth $8.70 billion. 
III. Financial Impacts:
A. If Alphabet Inc - Google Inc. acquires Twitter Inc then there will be high increase in the revenue. Social media is an emerging trend and most of the people are on social media these days with the wide availability of internet and affordable smart phones. Google has only Youtube as its social media platform and faces immense competition from Facebook and its other owned platforms including Whatsapp and Instagram. In this scenario, Adding twitter with Yiutube will help to generate more revenue. In addition to that, Google excels in getting advertisement and it can increase its revenue from advertising on Twitter.

Discuss how the proposed merger or acquisition will impact your company. Using the knowledge you have gained on valuation, you can finish your target company (Twitter Inc.) analysis by determining its...

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