Assessing the Financial Performance and Its Impact on Merger Acquisition

Assessing the Financial Performance and Its Impact on Merger Acquisition

Using the financial statements from your selected health care organization in Assignment 1, develop a financial plan for the next three years.

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 organization's ability to merge with its competitors.

( 6,8 )-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 health care organizations to merge. Provide support for your rationale.

3. Assume that your organization and competing health care organization have merged. Determine the evaluation criteria that a financial analyst would use to evaluate the financial performance of the organization post-merger, and identify the determinants that the analyst would use to decide whether or not the merger generated favorable financial results for the organization. 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.