Friday, September 20, 2013

large multinational corporation (MNC)


X Ltd is a large multinational corporation (MNC) which specialises in IT Services. This company is based in India. X Ltd is currently
considering acquiring Y Ltd, a smaller IT Services company from European Union. Y Ltd will be acquired for a consideration of90 million
euros to be paid all in cash. Y Ltd has shown a steady growth of20% each year during the period 2006 to 2012.
X Ltd has asked you to
prepare a report providing them with an advice about this potential acquisition. After analysing the background information as well as the
potential risks and returns (potential advantages and disadvantages), provide your recommendation.

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