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MaProjectProposal04082020

Acquisition Project PlanMekdes AsaminewRasmussen College 04/8/2020Acquisition Project Plan Project Description Kingston-Bryce Limited (KBL) is a custom furniture manufacturer. The company specializes in the production of hand-crafted dining room tables. As an attempt to enhance its competitive advantage, KBL has decided to acquire one of its closest competitors that deal with custom furniture. The acquisition of the company will allow KBL to expand its operations and increase its market share. Besides, increasing the size of the organization will triple the workforce of the company, thus enhancing efficiency and productivity. According to Kokemuller (2020), a large workforce promotes diversity in the organization, which is beneficial in terms of creativity and overall productivity. As a result, the purchase of the company is critical to KBL in meeting its organizational goals. Tasks and Milestones Tasks and milestones are critical components of a project plan. The project tasks involve activities of the larger project that have been divided into manageable parts. Milestones, on the other hand, are elements in the project schedule that show the progress of the project. Milestones are also essential for estimating the completion time of the project. The acquisition of the competitor by KBL entails three phases; preparation, transaction, and implementation. In the preparation phase, the company develops and an acquisition plan that will enable them to purchase the target firm. The plan entails a communication strategy that will be used by KBL to reach the target company and how they will present their offer to the management. This task will take a maximum of three months to be completed. If the target company accepts the offer, KBL will begin the valuation analysis of the organization. This process, which will take approximately three months, involves analyzing the financial components, including key performance indicators (KPIs) and key financial ratios such as profitability and liquidity ratios and solvency ratios. Gadoiu (2014) indicates that financial analysis helps in providing valuable information about the company, such as profitability and efficiency. As a result, valuation analysis is essential during the acquisition of the target company. The next phase in the project plan is the transaction between the two companies. Kingston-Bryce will initiate the negotiation process if they find the target company to be attractive for acquisition. Negotiation is the most critical part of the project and will take at least six months to be completed. The tasks involved in the transaction phase include due diligence, the configuration of the offer, and preparation of a contract for the takeover. According to Savović (2013), transactional due diligence allows the company to determine if they collected accurate information necessary for the takeover. The process also involves agreement on the mode of payment and other underlying requirements essential for completing the acquisition. Implementation of the plan will be the last phase of the project. The tasks undertaken in this process include the execution of the contract and the closing and integration of the project. Timeline for the Project The duration of the acquisition project is 18 months. The project timeline will be divided into three major phases; initiation of the acquisition project, transaction, and implementation. The initial phase (preparation) of the project will take three months to be completed, while the transactions will take six months since there are several tasks involved in the process. On the other hand, the implementation process will take a maximum of 6 months to be completed. The closing and integration of the new acquisition will be completed in three months. Key Stakeholders Successful implementation of the acquisition project requires the recognition and involvement of key stakeholders. The most critical group of stakeholders during acquisition is the employees. Kingston-Bryce should consider the opinion of its workforce before the acquisition to avoid resistance during the implementation of the project. Other key stakeholders that should be involved in the project decision-making include investors, lenders, advisors, suppliers, and government regulators. These stakeholders have significant influence; therefore, their needs and wants should be considered. ReferencesGadoiu, M. (2014). Advantages and limitations of the financial ratios used in the financial diagnosis of the enterprise.Scientific Bulletin-Economic Sciences,13(2), 87-95. https://pdfs.semanticscholar.org/7713/5df68d0e2b5d3c335f41ae1bc5e7651c204b.pdfKokemuller, N. (2020). Advantages & Disadvantages of Having a More Diverse Workforce. Retrieved from https://smallbusiness.chron.com/advantages-disadvantages-having-diverse-workforce-22935.htmlSavović, S. (2013). Due diligence as a key success factor of mergers and acquisitions. Actual Problems of Economics. 6. 424-434.

MaProjectProposal04082020