The written buyout research report Essay Example | Topics and Well Written Essays - 2500 words

The written buyout research report - Essay Example Besides resorting to increase the operational efficiency and cost cutting measures as a way to enhance the profitability, one another way to attain corporate growth is through acquisition. In 2005, Proctor & Gamble made a major acquisition when it bought out The Gillette Company Inc., so as to expand its reach in the consumer products' industry. The recent big successful mergers are Blizzard, which is acquired by Vivendi, eBay acquisition of PayPal, Disney’s acquisition of Pixar, yahoo’s acquisition of Overture, which turned to be Yahoo’s ad system now.( Goodman 2008:67). As regards to the recent acquisition , PayPal can be regarded as the most successful buy-out in the consumer Internet space , as it had the deep effect on the trajectory of the acquiring company namely eBay. PayPal acquisition whose service facilitates the exchange of money between individuals over the Internet fetches further transaction –based fee revenue to eBay. (Laudon 2008:458). Goo gle has acquired Android, YouTube, Keyhole, Where2, DoubleClick and Urchin and this has added more value to its business. In the year 2003, Google acquired Applied Semantic for $102m. Google AdSense is being powered by Applied Semantics technology. (Books LLC 2010:79). How a business can grow? It may indulge in an acquisition of another business, it may cut costs, or it may increase its revenue, which is known as top-line growth. (Sherrington 2003:2). In this research essay, an attempt is made how an acquisition will enhance the overall growth of an acquirer. In this research essay, an open advice is being given to acquirer to acquire Tesco Plc, UK a leading supermarket in UK and the world’s largest online supermarket. This research essay will analyse in detail the background of Tesco Plc, the financials, its business, and a recommendation why Tesco Plc is to be made as a target company to be acquired by the proposed acquirer. TESCO PLC, UK -Business Overview TESCO is the gia nt supermarket retailer in the U.K and has been ranked the globe’s biggest on-line grocery retailer and is the 4th biggest supermarket in the globe trailing after Home Depot, Carrefour, and Wal-Mart. TESCO is continuously earning profits from the year 1999 onwards. Initially, Tesco started to specialise in food products and then shifted into provinces like consumer electronics, clothing, Internet services, financial services, fuel services, banking services and customer _ telecom. In the year 2003, Tesco established a UK telecom division by associating with other telecoms in UK. For instance, with O2, it launched a joint venture for Tesco mobile. In the year 2004, as a joint venture, it established a broadband service. Tesco announced in the year 2006 that more than one and a half million customers had signed up for its telecom account, which provides services like fixed-telephone line , mobile phone services and broadband accounts. In association with Royal Bank of Scotland, Tesco also provides customers with financial services named Tesco Personal Finance and thus during 2006, Tesco was able to register more than 5 million customer accounts. (McLoughlin & Aaker 2010:128). As of date, Tesco Plc, UK is having about 2463 retail stores and there are 472, 04 employees working for Tesco. Source: Tesco’s Annual Report 2010:85 Tesco Plc has markets symbolising about 53% of the global