Accretion Analysis of the Amazon – Whole Foods Acquisition
Open Access
Author:
Harding, Alanna R
Area of Honors:
Finance
Degree:
Bachelor of Science
Document Type:
Thesis
Thesis Supervisors:
Dr. Joseph Randall Woolridge, Thesis Supervisor Dr. Brian Spangler Davis, Thesis Honors Advisor
Keywords:
Accretion Whole Foods Amazon Mergers and Acquisitions M&A Transaction Finance Financial Model
Abstract:
The purpose of this paper is to analyze Amazon.com’s acquisition of Whole Foods Market. More specifically, the paper will look to determine under what operating scenarios Amazon will achieve an accretive outcome. This paper will look specifically at an accretion dilution analysis sensitized to variety of financial operating cases. These operating cases will be determined by the potential synergies associated with the transaction.
After going through this analysis, I expect to see accretion occurring when Amazon has faster growing revenues, moderately declining gross margins, and significant operating expense synergies.
