This Case is aboutÂ FINANCIAL ANALYSIS, FINANCIAL MANAGEMENT, MERGERS & ACQUISITIONS
PUBLICATION DATE: April 30, 2013 PRODUCT #: 913556-PDF-ENG
Sterling Household Products Company case solution
The organization reports impressive revenue and gains to the investment community and has many highly regarded brand names. Despite a record of succeeding, a more profound investigation of fiscal measures shows that growth rates for profits, sales, and unit volumes are not high.
This acquisition may seem like a natural expansion of the experience and expertise of Sterling in the marketplace for home cleaning supplies. Both parties reach a provisional deal on Sterling and cost considers whether the planned investment adds value given the dangers entailed. Pupils analyze the qualitative and quantitative problems related to assessing a tactical acquisition prior to making a final recommendation and must perform an all-inclusive investment evaluation.