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Wrigley- Mars Merger

Wrigley- Mars Merger. Overview Case considerations Case write-up and negotiation process Key topics. Overview. April 10, 2008

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Wrigley- Mars Merger

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  1. Wrigley- Mars Merger Overview Case considerations Case write-up and negotiation process Key topics Senior Seminar in Finance

  2. Overview • April 10, 2008 • Jonathan Green, head of Wrigley corporate development and John Mitchell, head of Mars M&A are separately preparing for a merger meeting tomorrow with Wrigley’s Executive Group, the Wrigley family, and the Mars Executive Team. Senior Seminar in Finance

  3. Case considerations • Consider each company’s history, strategies, product lines, prospects, strengths, and weaknesses • Consider advantages and disadvantages of firm’s coming together from both companies’ perspectives • What are the most important negotiation objectives for each company? Senior Seminar in Finance

  4. Case considerations • Evaluate the value of Wrigley using several methodologies provided: • NPV/DCF modeling • Without synergies • With synergies • Multiples/comparative • Share price plus premium • Evaluate assumptions closely • Develop an offer, walk-away price range Senior Seminar in Finance

  5. Case considerations • Consider other deal terms • Price/value • Governance, including Wrigley’s separate headquarters in Chicago • Executive roles and compensation • Large block shareholder issues • Overall corporate strategies Senior Seminar in Finance

  6. Additional Key Case Write-up Info PowerPoint slide presentation for the M&A Committee • Ten (10) slides summarizing: *Valuation analysis and summary DCF, multiples, share premium, and synergy valuations; offer & walk-away in price per share *Merger objectives (top 3) and negotiation strategy • Include spreadsheet Senior Seminar in Finance

  7. Key topics • Merger/Acquisitions • Valuation • Deal structuring • Negotiation strategy • Governance • Spreadsheets available: • Mars Confidential.xls for Mars teams • Wrigley Confidential.xls for Wrigley teams • Spreadsheets contain valuation data with different assumptions Senior Seminar in Finance

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