Business Acquisitions: Merger of Walmart Stores Inc. and Target Corporation
Assume the role of the CFO who has been tasked with integrating the merger between the two companies. Introduce these two NASDAQ companies, explaining pertinent background information.
Explain the manner in which the acquisition fits into your company’s operational and strategic directions.
Select two choices provided in the scenario and compare the key accounting requirements for each of the selected choices.
One of the selected choices will be presented to the CEO and Board of Directors. The BOD will ask which method will provide substantial company growth in the next three years. Explain why your choice is the best forward-facing company goals for the company.
Identify and explain at least three possible strengths, business threats, and ways to mitigate those threats as a result of the proposed acquisition choice made.
Use at least two quality sources to support your writing. Choose sources that are credible, relevant, and appropriate. Cite each source listed on your source page at least one time within your assignment. For help with research, writing, and citation, access the library or review library guides.
Produce writing that is clear, well-organized, and applies appropriate SWS style. Writing contains accurate grammar, mechanics, and spelling.
Business Acquisitions
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Business Acquisitions
In a business acquisition, a business buys almost all of the shares of another company to take control of that firm. A corporation gets control over the decisions made by the business when it buys more than 50% of the shares and assets of the target firm. In this scenario, the acquirer controls the recently purchased shares and assets. The paper will discuss the merger of Walmart Stores, Inc. and Target Corporation.
Pertinent Background Information
Walmart Stores, Inc.
Walmart is a retail company founded in America. The company operates numerous stores all around the world. It functions as a chain of various departmental discount stores and hypermarkets. The company is headquartered in Bentonville, Arkansas, and as of 2015, it operated 11620 department shops worldwide (Walmart Inc., 1). When revenue was considered, Walmart was ranked as the world's largest company and employer. Over 2.2 million people work for the corporation, with 1.4 million based in the US. The business sells products for health, beauty, and hypermarkets.