2017年商务英语高级考试阅读理解专题训练（十六）

　　1 A cautious approach can be used when calculating what a company is worth.

　　2 Consider personnel issues so that you have sufficient resources to fulfill your objectives.

　　3 In order to know if you can make a return on your investment, assess how you can add to thecompany you are buying.

　　4 Providing sufficient support for staff during the acquisition process can have a favourable outcome.

　　5 Take into account your long-term requirements to ensure you have the resources you need.

　　6 Even after investing some effort in the acquisition, it may still be necessary to withdraw.

　　7 Terms initially negotiated can be changed after the acquisition.

　　Mergers and Acquisitions

　　As Finance Director of plastics manufacturer VKT, Yvonne Maynart has overseen many successful takeovers

　　A

　　It is essential to build up a team to handle the acquisition so that your existing business can continue uninterrupted during the deal. It also helps to operate with spare capacity so that you can transfer people during the initial stages. A key person should be driving the acquisition process forward, although one person alone cannot assume responsibility for a large deal. It is clearly vital to do thorough research when identifying potential targets - but do not be afraid to walk away from a deal if you become aware of serious difficulties with a company you are targeting.

　　B

　　To decide on the value of any target business, you must first determine what contribution your acquisition can make to it. For example, you may be able to increase revenue through a more focused management team, or improve margins through greater purchasing power and lower costs. At VKT, we base our valuations on conservative assumptions - we also add in the risk element. This approach may be best, and it's worth remembering that with listed companies, shareholders tend to have higher risk/reward expectations.

　　C

　　Developing relationships with finance providers is a key part of the finance director's role. It is important to draw up a good business plan to ensure backing from lenders in the early stages of the acquisition. Your loan application needs to be supported by detailed profit and cashflow projections. Make sure you factor in sufficient finance to let the business develop over time, and allow for reinvestment. Here at VKT, we usually finance acquisitions with bank debt in the form of a 364-day loan, which can then be refinanced at a lower interest rate later.

　　D

　　If an acquisition is large, it can take years for companies to integrate. At VICT, we monitor all acquisitions closely for at least two years, and the most important lesson I've learned is that a deal is only good if it is beneficial for both vendor and acquirer. Change causes confusion, so it needs to be handled carefully. In order to protect profits and grow the business, you need to minimise the impact of change and help the people affected feel comfortable about it. When this is done properly, it can really boost morale.