12 September, 1999
Dear All,
The takeover of Church & Co by Prada caught my eye this weekend and I have
put together a case study that you might find useful. Here is the first
part of what I have prepared:
Case Study
The anatomy of the takeover of Church & Co plc
By Duncan Williamson
Outline of the case
This case study has been written over the weekend immediately following the
announcement of the takeover of Church & company plc by Prada of Italy.
§ The case begins by summarising some of the aspects of the takeover: taking
information from a variety of sources including Church & Co.
§ The second part of the case takes a look at the financial information that
is relevant; and a variety of ratios are developed from the financial data.
§ The essential conclusions are that Church & Co has been under performing
for some time.
§ Finally, the case asks why would Prada, or any other company for that
matter, want to take over an ailing company such as Church & Co. The
conclusion is that despite having seemingly paid a 20% premium to acquire
the company, Prada may actually have bought Church & Co on the cheap.
Intended audience
As presented, this case is intended for teachers and lecturers. However, by
selectively amending the case, it can be made suitable for discussion with
GCSE and A level Business Studies students, it is also suitable for GCSE and
A level Accountancy students and first year Business/Accountancy
undergraduates. Depending on the syllabus, it could also be useful for A
level Economics students. The case is suitable for all other students that
can be considered as being equivalent to any of the forgoing groups.
Topics covered
o Takeovers/mergers and acquisitions
o Management
o Financial accounting
o Financial analysis (ratio analysis)
o Marketing and market analysis
o Retail management
o Property management (brief aspects only)
Let me know if you want a copy: it's in MSWord format
Best wishes for a good week for all
Duncan Williamson
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