caseism

SpeedSim: Made to Exit Case Solution & Answer

SpeedSim: Made to Exit Case Solution

On the other side, the reason for overpricing was to attract the Speed Sim to participate in the integration of two different processes and to overcome the threat of less market share value as compared to the competitor. These two reasons show that Quick turn was in a desperate situation to acquire the Speed Sim. Otherwise, it was already strong in independent business operations as well as enough funds to diversify the business instead of looking towards the venture capitalists. So it is concluded that whether the deal consists of overvaluing of the counter party, the aim of the acquisition was to stand in a competitive position and maintain the level of growth more than the industry level.

Quickturn and its capabilities to operate in a competitive environment

Since the inception of Quick turn, the company was developing an aggressive growth due to the nature of providing the technological solutions to the major customers of the industry through the use of reprogramming techniques and replenishment activities to investigate the products that were not manufactured or not in use.

So these innovative solutions had made the company generate more than 100 million of revenues annually and grew at the pace more than the industry standards. Thus it shows that the capabilities of the company were judged with its historical performance overtime. But during 1997, Quick turn faced an intense competition with Synopsys regarding the new innovative technological solutions of software products that a company was not possessed.

Therefore, to compete against it, the company decided to acquire one of the most successful small businesses in the market, Speed Sim. So the aim to acquire the business was to defeat the upcoming products of the competitors which might hinder the overall performance of Quick turn in the future.

In every situation, the entity successfully defended externally but had the lack of performance internally during the process of acquisition because of the different nature of business, products, culture as well as an environment where they operated. With all these concerns, it was difficult for the Quick turn to survive within a competitive environment internally as well as externally. If it would not defend itself in the future than either it would be bankrupted or be liquidated and sell out.

SpeedSim’s Sustainability during an acquisition

From the following perspective of Quick turn, however, the main goal for Speed Sim was to be acquired and sell out at the time when the market would be at the peak of the industry. So with the additional threat to sell in any time, Quick turn was in a serious evaluation of how to maximum the return of both the companies in order to stand in a competitive position as well as took considerations of how to adopt the internal efficiency promptly.

Thus the results show that both the companies were unable to adopt the integration of the United business. Whatever, it shows that there was a huge difference between the size of operations because Speed Sim had only 20 workers whereas 400 was employed by the Quick turn.

With all these major differences, it is concluded that merger and acquisition were quite easy in the start, but it told the whole story of how these activities would be subjected to huge losses if the current requirements would not be fulfilled.

Conclusion/Recommendation

From the following analysis, it is concluded that there are two ways where the activity of merger and acquisition would be performed properly and to meet the demand of both the companies. So according to the current analysis of the case, following recommended points would help to execute the activity accurately and effectively……………..

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