3ABB 3109 nvestment and Investment Banking
INDIVIDUAL PROJECT
DUE DATE: 7th of December at 4:00pm
Instructions:
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This is an individual project.
Word limit 2000 words (excluding graphs, tables, charts and all Appendices)
Assignment carries 30% weight of the final assessment.
Assignment must be submitted on time through Turnitin.
Late submission will be penalized as:
a. 5% deduction each day for the first six (6) days late submission
b. Assignment will not be graded or accepted after 6 days.
6. If you are facing any problems, please make sure to contact lecturer before the due date.
7. Assignment should be typed with BIBF Coursework Cover Sheet showing:
i. Title of the Course/Module.
ii. Class
iii. The names and IDs of all the students
8. BIBF Dealing Room resources must be utilized in order to fully complete this project.
Check your schedule on student white board. In addition where appropriate, you
MUST refer to other relevant resources (books, journals/publications) in support of
your work.
9. Photo copying, cheating or any other academic dishonesty will not be accepted.
10. All references must be provided (Harvard style).
PROJECT DETAILS
Investment Project
Due Date:
In order to apply concepts learned in the classroom and gain practical experience, each student
will assume the role of an investment manager and produce a report that will help the company in
its capital expenditure or allocation plan. This project will help you apply the valuation techniques
and allocation methods you learned in the class into a simulated environment and case scenario.
Choose any company that is listed on the Bahrain Stock Exchange
1-The company you chose is seeking to expand. Help the company in choosing two companies
that could serve as a target for a horizontal acquisition and two companies that could serve as a
target for a vertical acquisition and explain the basis of your choice. (10 marks)
2-Using the characteristics of a strong LBO candidate, critically analyse which of the four
companies you chose earlier would serve as a strong candidate for LBO. (15 marks)
3-Utilize the financial statements for the past five years along with any related market information
to perform a valuation of these four companies. (You need to apply two valuation methods).
Comparing with the market price of this stock, comment on whether you believe that the efficient
market hypothesis holds. (40 marks)
4-Analyse the revenues synergies or/and cost synergies that might accrue to the company when
taking over the target companies that you chose above. (15 marks)
5-Advise the company on which method is best for it, stock sales or asset sale, knowing that the
company is a public company. (15 marks)
6-Analyse whether this transaction would have a dilution or accretion impact on the acquirerÊearnings. (5 marks)
The assignment is worth 30% of the total grade.
Grading will be based on the quality of the reports, where you will demonstrate your
understanding of the important concepts, as well as identify and address key performance
parameters.

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