ASSESSING FINANCIAL PERFORMANCE AND ITS IMPACT ON MERGER ACQUISITION      

Develop a financial plan for the next three years. Use the financial statements from your selected health care organizations that were the focus of the SWOT Analysis assignment and that you have been following in the e-activities throughout the quarter. Using the Annual Reports of both organizations, consider the financial ratio that analysts would use to evaluate the financial condition of each company. Speculate on the organizations’ ability to merge with their competitors.

Write a six- to eight-page paper in which you:

1. Use your ratio analysis to determine whether the profitability trends are favorable or unfavorable and explain your rationale.
2. Suggest the key financial drivers that most likely will cause your health care organizations to merge. Provide support for your rationale.
3. Assume that your organizations have merged. Determine the evaluation criteria that a financial analyst would use to evaluate the financial performance of the organization postmerger. Identify the determinants that the analyst would use to decide whether the merger generated favorable financial results for the organizations. Provide support for your evaluation.
4. Predict the financial stability of the health care industry over the next three years. Provide support for your prediction.