Acquisition Candidate: Citigroup

Acquisition Candidate: Citigroup: This 5-page paper is a presentation for the recommendation of an acquisition for Citigroup. There is a bibliography.

Re: Synergistic Acquisition Candidate

The purpose of this memorandum is to present information regarding W Holding Company, Inc., of Puerto Rico is a possible candidate for further diversification and strengthening of Citigroup. As global investments is one of our goals, it is timely that we might ally ourselves with another holding company that has similar groupings of financial services under one umbrella banking, insurance, and investments (Citigroup, 1998, p.1)

W Holding Company, Inc., and its subsidiaries and subdivisions Westernbank Puerto Rico, Westernbank Insurance Corp., Westernbank Trust Division, Westernbank Business Credit, Expresso of Westernbank, and Westernbank World Plaza is a conservative, stable, yet dynamic firm that has been in existence since 1958 ( W Holding, 2002, p.2) Westernbank has virtually doubled in size every two to three years since its inception, and it is today Puerto Rico's fastest strongest and most diversified full fledged financial institutions. Net income for the year of 2002 was $44.6 million, and total assets are at $8.2 billion. How many companies, after 45 years, can continue to grow at such a rate? Few, and it seems that Westernbank is one that is rather compatible with the strengths and aims of Citigroup.

Related Essays

Elixir's Marketing Strategy .... At the same time Elixir was considering expanding into the Middle East, it became an acquisition candidate by a big US based firm. .... (894 4 )

Acquisition Strategy .... ACQUISITION TARGET FOR 302 CORPORATION Pursuant to you request, this group conducted a search and an analysis for a potential acquisition candidate for the 302 .... (1593 6 )

Acquisition and Investing .... how much of the money that a company keeps (as opposed to makes), Corporation A becomes a more attractive candidate for acquisition than Corporation B if the .... (758 3 )

Falling Sales at Kart .... owned company properties (Degross, 2002). Would Kmart Make a Good Acquisition Candidate? Mike Tory (2002) asserts that speculation .... (1747 7 )

Analysis of Kmart .... owned company properties (Degross, 2002). Would Kmart Make a Good Acquisition Candidate? Mike Tory (2002) asserts that speculation .... (1759 7 )

ng, 2002, p.5). We could be that someone else to a very great advantage for Citigroup. One senses that with the proper timing and delicate presentation, being especially sensitive to the differing methods of the Latin culture on the island, that W Holding Company could be a prime synergistic acquisition for Citigroup. They are the strongest, largest, and most capable asset-based lender in Puerto Rico. If we were serious about pursuing this opportunity, it would be important to be flexible regarding a price. Their net profit for 2002 was $85,963,000, and it seems that an offer in the range of $171,926,000 to $200,000,000 would be feasible. It seems prudent to offer an initial payment of 20 percent, with third party financing handling 50 percent, and the remaining 30 percent carried by a seller note of 30 percent (Gulf Coast Financial, 2003, p.36). Gulf Coast Financial, Business Valuation Specialists of Tampa, Florida, has been of great assistance in determining the valuation of W Holding Company, Inc. Of course, there are many factors influencing value, but Gulf Coast has examined the history of the enterprise from its inception, its economic outlook within the banking industry, the book value of the stock, the continued e

Category: Business - A