International Logistics and Finance Assignment Help (GC01927)

Table of Contents

Individual Written Work.

Introduction

Part A: Financial Accounting Case.

2.1 What are the Strategic advantages for Perkin Elmer in proceeding with Euroimmun’s acquisition?

2.2 What are the risks associated with this acquisition for Perkin Elmer?.

2.3 Prepare the Total asset section of the consolidated balance sheet post-acquisition.

Part B: Management Accounting Case.

3.1 A pilot Balanced Scorecard for the group and one of the operating divisions (Plumbing & Heating or Building Materials)

3.2 Critically evaluate the role of Balanced Scorecards as effective management tools.

3.3 Recommend if the group and each division should use Balanced Scorecards.

3.4 Recommend alternative budgeting and forecasting techniques the company could use to improve planning, control and measuring management performance.

4.0 Conclusion.

References.

Appendices.

Introduction

This report contains two parts including Part A and Part B. In the case of part A, the report focuses on the financial accounting case. In part A, the report firstly identifies the main strategic advantages for Perkin Elmer in proceeding with Euroimmun’s acquisition. Then, this part focuses on the main risks associated with this acquisition for Perkin Elmer. After that, it makes the Total asset section of the consolidated balance sheet post-acquisition. In Part B, the factor is the management accounting case. Firstly, this section creates a pilot Balanced Scorecard for the group and one of the operating divisions (Plumbing & Heating or Building Materials). After that, it evaluates the role of Balanced Scorecards as effective management tools. Then, it suggests for the group and each division to use Balanced Scorecards. Finally, it suggests alternative budgeting and forecasting techniques by which the company can improve planning, control and measuring management performance.

Part A: Financial Accounting Case

2.1 What are the Strategic advantages for Perkin Elmer in proceeding with Euroimmun’s acquisition?

Perkin Elmer was a global corporation comprising approximately 9,000 employees worldwide, whose mission was to “innovate for a healthier world.”¹² Perkin Elmer was a Massachusetts-based, publicly traded company on the NYSE. Through its own manufacturing facilities and various subsidiaries, Perkin Elmer served four major market segments: diagnostics, life sciences, food, and applied sciences (environmental and industrial). It was estimated that 35 million babies in over 90 countries were screened using PerkinElmer tests, saving an average of 70 babies each day from life-threatening conditions through early detection.

On the other hand, EUROIMMUN was a global manufacturer of medical diagnostic assays, reagents, and instrumentation, with a focus on science-driven product development. The company was founded in 1987 in Lübeck, Germany, by Professor Winfried Stöcker as an independent diagnostic reference laboratory and had grown into a manufacturer of assays. By 2016, EUROIMMUN served 35 countries, through 15 wholly-owned subsidiaries and 60 distributors. With 3,100 employees worldwide, over 130 of whom had PhDs, EUROIMMUN boasted impressive scientific expertise. EUROIMMUN specialized in the fields of immunology, cell biology, histology, biochemistry, and molecular biology. Perkin Elmer proceeds for the acquisition with Euroimmun due to the following strategic advantages.

Development of Diagnostics segment: The acquired businesses were EUROIMMUN acquired for total consideration of €1.2 billion, Tulip Diagnostics Private Limited (“Tulip”) acquired for total consideration of $127.3 million, and one other business acquired for total consideration of $14.8 million. After the acquisition, the diagnostics segment of PerkinElmer can be improved.

New product development: Perkin Elmer served four major market segments including diagnostics, life sciences, food, and applied sciences. On the contrary, Euroimmun offers instruments, reagents, assay platforms, and software to hospitals, medical labs, clinicians, and medical research professionals to help improve the health of families. By the acquisition, Perkin Elmer can be served new products including Immune fluorescence testing (IFT), enzyme-linked immunosorbent assay (ELISA), chemiluminescence-based immunostaining, immunoblots, molecular microarrays, PCR, liquid handlers and software solutions, Autoimmune testing covering rheumatology, hepatology, gastroenterology, endocrinology, neurology, nephrology, dermatology and infertility and Infectious disease testing covering bacteria, viruses and parasites.

Growth: The important motive for acquisition is to ensure growth and diversification. For companies that desire rapid growth in size or market share or diversification of their products, a merger can help to fulfill this objective. Perkin Elmer and EUROIMMUN are two large companies. The acquisition of PerkinElmer with EUROIMMUN helps to ensure the growth of PerkinElmer in the health and care industry.

Synergy effect: Synergy means a whole is greater than the sum of its parts. Synergy enhanced the performance and increased the profitability of a firm. By merging, the companies get staff reduction, the economics of scale, and acquiring new technology. PerkinElmer and EUROIMMUN are two large companies. The acquisition of PerkinElmer with EUROIMMUN assists in gaining the combined effect from the acquisition.

Increased managerial skills and technology: A firm may merge with another in order to increase managerial skills or technology. This skill and technology help to achieve greater wealth maximization. Perkin Elmer and EUROIMMUN are two large companies. Both companies have qualified staff and technological supports. Therefore, the acquisition of PerkinElmer increases managerial skills and technological capability.

Tax considerations: Mergers can help to achieve tax savings. A profitable firm can merge with a tax loss firm to reduce taxable income. Perkin Elmer and EUROIMMUN are two large companies. The acquisition of Perkin Elmer helps to reduce the tax amount that increases the profitability…………………

Full Documents Click Download Button

Free – Download Checkout Added to cart