Introduction

Merger and acquisitions helps the company to take the advantages of other companies and improve its image in the market. Through the mergers and acquisitions, companies cover other markets in order to attract more customers in the markets. This paper discusses the merger for SLP Company and also presents the reasons to select one company for the merger. This paper also discusses the tools of finance for the chosen organization.

Answer 1: Merger of Family Dollar Inc

In order to create merger for Family Dollars Inc., 7-Eleven Inc. may be a very good option. It is a store, which open 24 hours in a day. It is a subsidiary of Seven-Eleven Japan that may be helpful for the company in order to improve market image. Company has more than 9000 own franchises and has 43000 licensed stores in 16 countries. It would be helpful for the company to expand its market in the Asia Pacific and Nordic regions because Seven-Eleven company has more of its stores in these regions. Company also has strong product portfolio with 2500 items that would be helpful for the company to gain more profits from the markets. This merger would also be helpful for Family Dollars Inc. to take the benefits of market capitalization. With the help of this merger, company would also improve its financial position because seven-eleven company has much more stores and franchise that would provide a good profit to the company (Hoovers, 2012).

Answer 2: Finance for Chosen Organization

In order to create successful merger with Seven-Eleven Inc., Family Dollar Inc. would use two ways to finance the merger. Company may use cash and shares of the company. These both of way may be helpful for the company to collect finance in easy way for the merger. The cash position of Family Dollar Inc. is good that may be helpful for the company to pay enough money to the employees that is essential for mergers and acquisitions. Shares may also be used by the company. In current financial situation, shares may also be a good option for the company in order to fulfill the terms and conditions of a successful merger (Bagley & Bagley, 2002).

Ans. 3: Second and Third Choices

To create successful merger for Family Dollar Inc. the second choice would be Big Lots Inc. It is US’s number one broad line closeout retailer company. In 48 US states, company has more than 1400 stores and also has 90 stores in Canada. Company also has brand variety in its product portfolio. Product portfolio of company includes the overproduced, returned and discounted products. Company’s product portfolio also includes the private level items and furniture. It may be helpful for the company to increase its market shares in furniture and other related products in the market (Hoovers, 2012).

As the third option, company would choose BJ’s Wholesale Club Inc. Company is the third largest warehouse club, which have more than nine million members and have 190 clubs in 15 states of US. Company deals in food and merchandise market. In the food, company includes canned, fresh and frozen items and in merchandise, company includes apparel, house wares, office equipments, small appliances and gas products. Company targets on retail customers rather than small businesses (Hoovers, 2012).

Answer 4

The module 5 SLP is related to the merger and acquisitions which provides the detailed description about the best company in order to create effective and successful merger with Family Dollar Inc. in the market. Through this paper, it is identified that 7-Eleven Inc. may be the first choice for the company in order to establish relationship. It is also analyzed that 7-Eleven Company has more stores in US as compare to other companies such as Big Lots, Inc. and BJ’s Wholesale Club Inc. in the same filed. After analyzing the paper, it is identified that company may selected cash or share method in order to make successful finances for merger.

Conclusion

From the above discussion, it can be concluded that for effective merger of Family Dollar Inc., 7-Eleven Inc. is a good option. With the help of this merger, company can improve its market image and also increase in profitability. Company may also consider other companies for mergers and acquisitions. For the finance, company may be considered shares. It is helpful for the company to retain stakeholders.

References

Bagley, C. E. (2002). Managers and the Legal Environment: Strategies for the 21st Century. USA: West/Thomson Learning.

Hoovers (2012). 7-Eleven Inc. Retrieved from http://www.hoovers.com/company/7-Eleven_Inc/crskif-1-1nji3i.html

Hoovers (2012). Big Lots Inc. Retrieved from http://www.hoovers.com/company/Big_Lots_Inc/rfysji-1-1nji3i.html

Hoovers (2012). BJ’s Wholesales Inc. Retrieved from http://www.hoovers.com/company/BJs_Wholesale_Club_Inc/hyhfyi-1-1nji3i.html