Business Acquisition

Short Q&A Directions:
·
Each question must be answered
with at least a 5 sentence paragraph and include the reference after each
response and in-text citation. The references should be from the list of
reading materials included below.

·
All sourced information must be
accompanied by at least 3-4 lines of student-written, original text, explaining
each line of quoted content. Quoted, summarized, or paraphrased material,
derived from a source must always be cited/referenced. Properly credit the
author per APA citation guidelines both in-text and as a reference at the end
of the response.

Question 1
Why it is often easier to obtain financing for the
purchase of an existing business, versus starting a new business?
Question 2
What are three common factors you should consider
when determining whether or not to franchise or buy a business?
Question 3
Outline several of the disadvantages of starting a
business from the ground up.
Question 4
Describe at least three things that are contained in
a purchase agreement.
Question 5
What type of business is predominant in franchising?
Question 6
What is one of the key benefits that business format
franchisors gain from their franchisees?
Question 7
Describe the three things a franchisee is required to
pay to the franchisor.
Question 8
What is the benefit in franchisors attempting to
convert the tacit knowledge held by franchisees?
Question 9
In the buyer’s due diligence process as part of a
merger and acquisition, what information does the inspection of financial
statements and the management and operations review examine?
Question 10
What are three things that can increase the odds of a
merger being successful? Identify at least three key success factors in merger
and acquisition arrangements.
Question 11
Provide an explanation of how the process of
knowledge acquisition works in international joint ventures.
Question 12
What is included in a due diligence checklist? List
at least 10 items.
Question 13
Describe what an acquisition is and discuss the
difference between a leveraged buyout and a bailout acquisition.
Question 14
Improvement in a company’s financial health can serve
as motivation for it to engage in merger and acquisition activities. Identify
and describe at least four of the ways a company’s financial health could
potentially improve, as a result of merger and acquisition activities.
Question 15
What is a conglomerate merger and what is the
principle reason for selecting this merger option?

BUSINESS ACQUISITION READINGS
· How to Buy a Business.
(n.d.). Entrepreneur. Retrieved from
https://www.entrepreneur.com/article/79638
· Buying a Small
Business: Assets Vs. Entities from SCORE (2014) The Art of Buying and Selling a
Business from Comeau, S. (2015). Law 4 Small Business website. L4SB provides
focused services for small business development, including legal, business
structure and acquisitions.
· Into the Black with
Blueberries: To Buy or Not to Buy-A Business Case Analysis Study from Lyman P.,
Smith, S. (2015) Journal of International Academy for Case Studies, 21(5), pp.
183-193.
· Buying Existing
Businesses from SBA.gov Due diligence when buying an existing business.
· Lindblom, A., &
Tikkanen, H (2010). Knowledge creation and business format franchising. From
Management Decision, 48(2), pp. 179-188.
· Combs, J., Ketchen D.,
& Short, J. (2011). Is Franchising Entrepreneurship? Yes, No, and Maybe So.
From Entrepreneurship Theory & Practice, 35(3), pp. 583-593.
· Franchising: A Popular
Trend
· Gitman, L. J., Shah,
A. J., Mcdaniel, C., Reece, M., Koffel, L., Talsma, B., & Hyatt, J.C.
(2018). Introduction to Business. OpenStax. pp. 147-155.
· Lewandowska, L.
(2014). Franchising As a Way of Creating Entrepreneurship and Innovation.
Comparative Economic Research, 17(3), 163-181. doi: http:
//dx.doi.org.libproxy.nau.edu/10.2478/cer-2014-0028
· Allahar, H. (2015). An
Overview of Key Issues in Mergers and Acquisitions: A Case of Trinidad and
Tobago, International Journal of Economics, Commerce and Management, 3(8), pp.
409-425.
· Bratianu, C. (2015).
Factors Affecting Knowledge Acquisition (Chapter 10), Organizational Knowledge
Dynamics: Managing Knowledge Creation, Acquisition, Sharing, and
Transformation. Hershey: IGI Global.
· Kraft Case Study:
Impact of Kraft’s Acquisition of Cadbury from Datamonitor Plc. (2010). Kraft
strikes gold: Cadbury to lose its independent status.
· Mergers and
Acquisitions Analysis With The Case Study Method, from Agarwal, P. and Mittal,
R. (2014). International Journal of Management and Commerce Innovations, 2(1),
pp. 236-244.
Terms, motives, and types of mergers (pp. 236-244).
· Horizontal
Integration: Mergers and Acquisitions Morris, J. & Hodges, T. (2019).
Strategic Management. OER Commons. Pp. 150-152.

Last Completed Projects