Assessment 2: Financial ratio analysis

Assessment 2: Financial ratio analysis

XYZ Mutual Fund has now successfully established themselves in Australia by being the major shareholder of Baby Bunting Ltd and the investment is performing well. Due to the positive outlook in this industry, John Smith is recommending the Board of Baby Bunting to consider buying G8 Education Ltd (i.e. in childcare) as part of a horizontal expansion strategy.

John has asked you to provide a feasibility report for the board on the possible Merger and Acquisition project between Baby Bunting Ltd and G8 Education Ltd.

In this assessment, you are required to conduct financial analysis on the Baby Bunting2021 Annual Report(Baby Bunting Group Limited 2021) and G8 Education's2020 Annual Report(G8 Education 2020).

Note: Baby Bunting 2021 Annual Report July 2020 to June 2021 G8 Education 2020 Annual Report January 2020 to December 2020

This assessment supports unit learning outcomes 2, 3 and 4.

Your assessment submission should include a cover page.

Task

Your feasibility report should address the following:

Use theBAO5734 financial template (XLSX 26.44KB), and calculate thefirms' financial performance using profitability, leverage (equity or debt), and liquidity ratios. (500 words)

- I have done the template

Compare the financial analytical results of the two companies and justify why a merger is timely. (500 words)

Articulate the strengths and weaknesses, using Porter's Five Forces model and SWOT Analysis of the merger and acquisition project using the Consolidated Financial Results (Balance Sheet, Profit and Loss and Cashflow) of Baby Bunting Pty Ltd and G8 Education. (500 words)

Evaluate the elements that shape the merger's value creation and assess its potential to maximise its triple-bottom-line performance (Refer to the sustainability sections of the annual reports). (500 words)

Use Harvard referencing minimum 10.