An Acquisition for Citigroup

Its growth rate has been steady for almost five decades. In between the last 2 years it increased its revenue 38.30 percent over the year before, and increased its assets base 39.35 percent over the year prior to (W Holding, 2002, p.5). This is a phenomenal growth that would be very good to our own portfolio.

First, it need to be understood that this proposal is completely confidential, as W Holding isn't openly on the market. The top executives are aware that if a business puts itself up for sale that the shoppers perceive that there is a difficulty of some sort and tend to lose confidence. Corporation is lost if the timing is ill-conceived (Gulf Coast Financial, 2003, p.5). Nonetheless info gleaned from sources inside firm, sources believed to become reliable, it is feasible that W Holding could be interested in merging with Citigroup. 2 on the senior officers are retiring within a single year, and there has been a bit of unrest inside business since the events of September 11, 2001. Terrorisms did not particularly damage W Holding, but there is an undercurrent of unease inside the top echelons, and it appears how the timing might be appropriate to create a proposal to W Holding Company.


Lolding business during a time of international duress. There's a sense that they would appreciate owning somebody else eat the reins, though no a single has stated that directly. The second thing of negotiation stands out as the company's concern more than their nonperforming loans. The percentage isn't great, only .51 percent, but the number has been growing for ones past four years right after a high of .56 percent in 1998, and the business is uneasy about this record. One gains the impression that they want to hand more than the trouble of nonperforming loans to someone else (W Holding, 2002, p.5). We could possibly be that someone else to a extremely excellent advantage for Citigroup. A single senses that from the right timing and delicate presentation, becoming in particular sensitive towards the differing methods in the Latin culture over a island, that W Holding Business could be a prime synergistic acquisition for Citigroup. They are the strongest, largest, and most in a position asset-based lender in Puerto Rico.

Total interest expense (219,413)

If we were serious about pursuing this opportunity, it would be critical to be flexible concerning a price. Their net profit for 2002 was $85,963,000, and it appears that an provide inside variety of $171,926,000 to $200,000,000 would be feasible. It appears prudent to offer an 1st payment of 20 percent, with third party financing handling 50 percent, and also the remaining 30 percent carried by a seller note of 30 percent (Gulf Coast Financial, 2003, p.36). Gulf Coast Financial, Company Valuation Specialists of Tampa, Florida, has been of very good support in determining the valuation of W Holding Company, Inc. Of course, there are lots of causes influencing value, but Gulf Coast has examined the history with the company from its inception, its economic outlook within the banking industry, the book importance with the stock, the continued revenue capacity, the dividend-paying history and capacity, and whether or not the enterprise has goodwill (Gulf Coast, 2003, p.15)

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