In Milestone One and Two you chose your bidding company(Kroger) and a target company(Whole Foods).

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Target Company: Whole Foods
Bidding (acquiring) Company: Kroger
Overview: In Milestone One and Two you chose your bidding company(Kroger) and a target company(Whole Foods). You have examined and discussed the background of each. You will now take the prior analysis performed and discuss how the proposed merger or acquisition will impact your company. Using the knowledge you have gained on valuation, you can finish your target company analysis by determining its value.
Then, you will discuss how the target company will bring firm value to your organization, as well as any negative impacts the merger or acquisition could cause. You will also determine the best way to finance the deal. You will consider how your deal structure will affect the capital structure of your organization, and what impact the deal will have on additional risks associated with mergers and acquisitions that may affect firm value.
Prompt: Explain the potential impacts of merging with or acquiring the target company. Consider capital structure and cost of capital when formulating a deal structure.
Specifically, the following critical elements must be addressed:
II. Target Company Analysis:
F. Assess the last five years of the target company’s financial history for determining its firm value.
III. Financial Impacts:
A. Explain how the target company will bring firm value to your organization by providing specific examples of economies of scale, cost reductions, or increase in revenues.
B. Explain the negative financial impacts that mergers and acquisitions could have on your organization. Support your explanation using examples related to your organization’s objectives.
C. Determine if your organization will finance a deal through the use of cash, stock, or debt. Explain how your selection is most appropriate for mitigating the financial impacts mentioned previously.
D. Based on the above deal structure, discuss additional risks to your organization and explain how this deal structure will reduce their impact on firm value. Consider political, social, taxation, HR, or cultural risks.