Bank Bid Analysis Worksheet
FINA 458 – BankSim Initial Purchase Bid Team/Bank Name ________________________
Due to a serious drought, the only country club located in Wildcat County, California has been forced to close. This disaster has led to the resignation of eight (yes, eight) local bank presidents who have chosen to relocate to Palm Springs where water is apparently not a problem. In an unprecedented move, because of these resignations, all eight banks have been put up for sale.
Your executive team has been assembled to prepare a bid to purchase one of the eight banks. Sadly, you receive word that there are four other banks also competing for the spoils. You are determined to purchase one bank, so you are preparing bids on five of the banks to ensure that you can acquire at least one. The latest financial exhibits (limited as they are) of all eight banks can be found on the FDIC website (okay Blackboard).
You have been asked by your Board of Directors to rank order your top five choices and list a bid for each one.
ALL BIDS ARE DUE AT 5:00 PM, March 21.
Rank Bank Name Bid Price/Share
#1 Bank C $37.52
#2 Bank E $40.512
#3 Bank H $39.52
#4 Bank F $38.52
#5 Bank B $39.52
Your Board of Directors will evaluate your performance based on your cumulative return on investment over the course of the simulation.
The “Bank Bid Analysis” worksheet is provided to help you calculate your bid. Some things to consider:
Each bank has 100,000 shares outstanding
Submit bids on a price per share basis
Bids CANNOT be for less than book value
Bids will be competitive with the highest bidder awarded the acquisition
Remember – the more you bid, the more profits you will need to generate over the course of the simulation in order to maximize the return on your initial investment (purchase price).
