PepsiCos Bid for Quaker Oats A Case SolutionPosted by John Smith on March 1st, 2018 PepsiCos Bid for Quaker Oats A Case SolutionThroughout 1999, PepsiCo carefully monitored several potential proper purchases. In Nov 2000, it made an appearance the right moment to have an equity-funded acquisition had showed up. At this time around, PepsiCo management made the decision to initiate private discussions using the Quaker Oats Co. in regards to a potential business combination. Gatorade, a vital brand in Quaker's portfolio, had lengthy been in PepsiCo's wish list, but PepsiCo's managers, brought by CEO Roger Enrico and CFO Indra Nooyi, were dedicated to maintaining the need for PepsiCo's shares and, consequently, were determined to not pay an excessive amount of for Quaker. This case provides information that enables students: to evaluate the need for Quaker's companies, estimate potential synergies connected having a Pepsi-Quaker merger, and develop a highly effective settlement strategy. Excel CalculationsYes Questions Covered1- Value Quaker Oats (QO) as a standalone company by using both DCF and multiples. Discuss and compare these valuations and the market price of QO as of June 2000 (i.e., prior to the rumors that it is an acquisition target).
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