P lease select an existing, real local (small or medium sized) company from the area where you live (South Florida), for your convenience. It should be a company that….
Assignment 2: Assessing Financial Performance and Its Impact on Merger Acquisition
My health care organizations are Addus Home Care and Aetna Inc.
Develop a financial plan for the next three years. Use the financial statements from your selected health care organizations that were the focus of the SWOT Analysis assignment and that you have been following in the e-activities throughout the quarter. Using the Annual Reports of both organizations, consider the financial ratio that analysts would use to evaluate the financial condition of each company. Speculate on the organizations’ ability to merge with their competitors.
Write a seven page paper in which you: 1. Use your ratio analysis to determine whether the profitability trends are favorable or unfavorable and explain your rationale. 2. Suggest the key financial drivers that most likely will cause your health care organizations to merge. Provide support for your rationale. 3. Assume that your organizations have merged. Determine the evaluation criteria that a financial analyst would use to evaluate the financial performance of the organization postmerger. Identify the determinants that the analyst would use to decide whether the merger generated favorable financial results for the organizations. Provide support for your evaluation. 4. Predict the financial stability of the health care industry over the next three years. Provide support for your prediction. 5. Use at least three quality, current (no more than four years old) academic resources. (Note: Wikipedia and other websites do not qualify as academic resources. Scholarly resources include national health professional journals, governmental websites, and corporate organizations.) Your assignment must follow these formatting requirements: Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Include a cover page containing the title of the assignment, your name, the professor’s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.