Perform a risk analysis

Perform a risk analysis by evaluating the risk factors facing the parent (acquiring) company if it moves forward with the proposed acquisition of the target. The key is to identify and analyze the major risk exposures and then, for the risk management portion, recommend any specific tools, technologies, processes, procedures, policies, or decisions that might be implemented to mitigate or in some way manage the identified risks.

The acquiring company is Johnson & Johnson (JNJ). The target company is Baxter International Inc (BAX).

follow the outline below:

1. Title page
2. Table of Contents
3. Introduction -10 points
4. Identification and Assessment of Risk Items- 30 points (Read the notes to financial statements, do a bit of research for any news the company is in or the industry news etc)
5. Analysis and prioritization of risk- 20 points.
6. Recommendation of risk mitigation and management measures-20 points
7. Conclusion-10 points
8. References-10 points
9. APA Format

Around 8 -10 pages excluding title page and bibliography.

Tips:

Be sure to review the notes accompanying the financial statements for the target company. In reviewing these explanatory footnotes, pay close attention to the significant accounting policies implemented for calculating and presenting items such as depreciation and inventory valuation, determination of value for intangible assets, subsequent event disclosures, contingencies, employee benefits, and anything relating to debt that might pose a threat to ongoing cash flows or dividends. You should highlight and address any noteworthy accounting items of concern as a part of your due diligence documentation.

Possible risk items could be: Look into the notes to financial statements to identify risk items.

1. Industry Risk. ( Technology advancements,Compliance, shortage of raw material, Change in life Styles etc.)
2. Company Specific Risks
3. Risk of uncertainty in revenue generation because of shrinking market share, change in life styles, technology advancements, talent acquisition, Court rulings, increase in competition
4. Accounting Practices Risk OR Risk of critical accounting estimates being inaccurate
5. Risk of loosing talented manpower after acquisition