Part 3
Type of industry: Moving services industry.
The public company which is a candidate for BJM to consider for their long-term expansion and acquisition strategy is the Sirva Inc, a worldwide relocation and moving company. It is one of the largest moving companies in the world with more than 1,475 offices in over 170 countries. They provide moving services through agents that own trucks and these agents are also responsible for hauling, packing, storage and distribution of household products.
Reasons why this will be a strategic fit for the company
- According to the Sirva Inc’s financial performance below, it is evident that the company has been experiencing revenue and profit growth since the year of their inception. Revenue increases …show more content…
Their market share is larger than most companies in this industry. This means that if BJM engages with them in their long-term expansion, they will acquire more customers because the demand is more for this company and other companies.
Part a :
MGAB02 – 2018 Winter
Group Project
Due Date : Tuesday : April 9, 2018 (11:59 pm via Blackboard & Turnitin)
Appendix 2: Template for Section 3 of the report
Industry selected:
Moving services industry
Company selected:
Sirva Inc
URL Link: http://quote.morningstar.com/stock-filing/Annual-Report/2007/12/31/t.aspx?t=:SRVA&ft=10-K&d=4fdaf9561f66b652 4 qualitative reasons in selecting this specific public company within the industry chosen:
1.
The company is experiencing profit and revenue growth.
2.
The company has a market share of 6.0% of the moving services industry.
3.
BJM and Sirva Inc have similar goals (to reduce carbon emission, which is a part of the Community and Green core value of BJM)
4.
If BJM and Sirva Inc do partner, even if the market slows down in Canada, they still have America to revive their market.
Part b:
Financial Ratio Analysis: (Choose a total of 8 relevant ratios that cover the 3 following 3 categories)
Selected Company
BJM
Year …show more content…
- The management of a company that wishes to issue shares must publicly disclose financial information. This requires a lot of money and they may reveal information that they would rather keep secret.
2. Borrowing/Obtaining loans: This is another form of raising money to finance business activities. What this entails is that the company can borrow money from another company or from the bank and this requires interest payments.
Advantages:
- Borrowing money, unlike issuance of shares, will not affect the ownership of the company and there will be no problem of dilution or trying to satisfy shareholders.
- The lender of money is entitled only to the repayment of the agreed-upon principal and interest and has no direct claim on the profits of the borrower.
- Raising debt capital is not so complicated because the company is not required to comply with state and federal security laws and regulations.
- Interest on the debt can be reduced on the company’s tax returns and this lowers the cost of the loan to the company.
Type of industry: Moving services industry.
The public company which is a candidate for BJM to consider for their long-term expansion and acquisition strategy is the Sirva Inc, a worldwide relocation and moving company. It is one of the largest moving companies in the world with more than 1,475 offices in over 170 countries. They provide moving services through agents that own trucks and these agents are also responsible for hauling, packing, storage and distribution of household products.
Reasons why this will be a strategic fit for the company
- According to the Sirva Inc’s financial performance below, it is evident that the company has been experiencing revenue and profit growth since the year of their inception. Revenue increases …show more content…
Their market share is larger than most companies in this industry. This means that if BJM engages with them in their long-term expansion, they will acquire more customers because the demand is more for this company and other companies.
Part a :
MGAB02 – 2018 Winter
Group Project
Due Date : Tuesday : April 9, 2018 (11:59 pm via Blackboard & Turnitin)
Appendix 2: Template for Section 3 of the report
Industry selected:
Moving services industry
Company selected:
Sirva Inc
URL Link: http://quote.morningstar.com/stock-filing/Annual-Report/2007/12/31/t.aspx?t=:SRVA&ft=10-K&d=4fdaf9561f66b652 4 qualitative reasons in selecting this specific public company within the industry chosen:
1.
The company is experiencing profit and revenue growth.
2.
The company has a market share of 6.0% of the moving services industry.
3.
BJM and Sirva Inc have similar goals (to reduce carbon emission, which is a part of the Community and Green core value of BJM)
4.
If BJM and Sirva Inc do partner, even if the market slows down in Canada, they still have America to revive their market.
Part b:
Financial Ratio Analysis: (Choose a total of 8 relevant ratios that cover the 3 following 3 categories)
Selected Company
BJM
Year …show more content…
- The management of a company that wishes to issue shares must publicly disclose financial information. This requires a lot of money and they may reveal information that they would rather keep secret.
2. Borrowing/Obtaining loans: This is another form of raising money to finance business activities. What this entails is that the company can borrow money from another company or from the bank and this requires interest payments.
Advantages:
- Borrowing money, unlike issuance of shares, will not affect the ownership of the company and there will be no problem of dilution or trying to satisfy shareholders.
- The lender of money is entitled only to the repayment of the agreed-upon principal and interest and has no direct claim on the profits of the borrower.
- Raising debt capital is not so complicated because the company is not required to comply with state and federal security laws and regulations.
- Interest on the debt can be reduced on the company’s tax returns and this lowers the cost of the loan to the company.