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Essay / Research Paper Abstract
This 12 page paper explores the reasons behind the acquisition of Hughes Supplies Inc. by Home Depot. The paper looks at the companies, at the theories behind mergers and acquisition and considers the financial results with an analysis of the financial performance of both companies between 2003 and 2005 to assess the reasons and potential outcome of this acquisition. The bibliography cites 10 sources.
Page Count:
12 pages (~225 words per page)
File: TS14_TEHomeDHughes.rtf
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Unformatted sample text from the term paper:
of January in an article by Valerie Bauerlein with the title Home Depot to Buy Hughes Supply For $3.19 Billion. The article looks briefly at the reasons why Home Depot
are looking at acquiring Hughes Supplies Inc, with reflect the state of the environment and the industry and the benefits that the acquisition is expected to bring. Home Depot
has been a successful company but has reached the point where organic growth is difficult, they are already in most areas and as such increasing store numbers would merely spread
the sales over a greater number of stores rather than creating more sales. The Home Depot poison in the US has reached the optimal point and as such growth needs
to take place in another way. When looking t Hughes Supplies Home Depot saw the opportunity to gain a string foothold is a related, but different market, which would
increase sales. According to the market is expected to increase Home Depots earnings per share in the region of 3 cents for the following year and by 2008 make up
18% of the total ales (Bauerlein, 2006). If we look at Home Depot we can consider how and why the company may have started to look for an acquisition
target in order to carry on growing. Home Depot were founded in 1979 by Bernie Marcus and Arthur Blank, since that time they have grown to the worlds largest Do
it yourself (DIY) chain. Starting in Atlanta Georgia there are now branches of Home Depot or one of its subsidiary brand names, all over the US as well as in
seven different Canadian provinces, Puerto Rico and Mexico (Home Depot, 2006). Overall, the company has more than 2000 stores, this is a large growth rate as there were less
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