Essays on Acquisition of Galaxy Pharma Company Case Study

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The paper "Acquisition of Galaxy Pharma Company" is a perfect example of a finance and accounting case study. This report is about the proposed acquisition of Galaxy Pharma Company that is based in Japan. The company is a B Corporation and is organized under the laws of Tokyo. The company is engaged in the business of manufacturing various types of branded generic drugs and other healthcare products. For the year ended 2013, the company had operating income of Yen 4,551 million, fixed assets of Yen 8,337 million, and current assets of Yen 30,250 million (40 per cent of which is cash).

For internal purposes only, the proposed purchase price for the Company is Yen 102,000 million to be paid in cash at closing. Closing fees and transaction of Yen 5 million have been estimated, resulting in a total buying cost of 102,005 million for the Company. Under the proposed purchasing structure, the amount of money that is required to complete the deal would be Yen, calculated as follows: Estimated Total Purchase cost Yen 102,005.000,000   Less: Interest Bearing Assumed expenses/liabilities 2,000,000   Less Seller Financed Portion of: Employment Contract 10,000,000 Management Contract 2,000,000   Balance of Purchase Cost to be funded Yen 101,991 Million   In order to fund the acquisition of the Galaxy Pharma, the following funding structure has been proposed Balance of Purchase Cost to be FundedYen 101,991 million Term Debt Funding 100,000 million Equity Funding 1000 million Discretionary Amount overfunded 991 million 2.0 Limiting Conditions and Assumptions This proposal is subject to the following Limited conditions and assumptions: Estimates, opinions, and information contained in this report have been acquired from reliable sources (Grover and Davenport, 2001). The company and its directors warranted that the information given was accurate and complete to the best of their knowledge (Eiteman, Stonehill, and Moffett, 2007).

The information supplied by the directors has been accepted as correct without further verification.



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