Barratt Developments Assessment Brief Case Study Assessment brief 010: case study After several rounds of interview, you are successfully appointed as the CFO of the Company.
The Company has enjoyed considerable success in recent years and the board of directors has decided to adopt a growth strategy by making further investment in its current product line and acquiring an existing company in their industry. As the newly appointed CFO of the Company, you are tasked to evaluate the performance of the Company and prepare a report to the board of directors with an evaluation of the potential investment opportunities.
The first investment under consideration is to make further investment in their current product, which needs initial investment between £30,000,000 and £40,000,000 and has a life of 10 years. The finance department appraised some other similar investments before using different investment appraisal techniques. The discount rate is 12% for the Company (Ignore inflation and taxation).
At the same time, the Company plans to acquire another company in the same industry in the near future. However, the board of directors requires more information for the potential target. You are tasked with the responsibility of identifying a potential target company and preparing a report to the board of directors justifying the choice of a target company and potential implications from mergers and acquisitions.
Barratt Developments Assessment Brief Case Study Required
Suppose you are successfully appointed as the CFO for ONE of the listed companies below.
Associated British Foods
AstraZeneca
Barratt Developments
Diageo
Halma
