#TITLE_ALTERNATIVE#

• Main Author: RAYMOND LEPONGBULAN , DAVID
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/10178
• Institution: Institut Teknologi Bandung

In globalization era end more tight competition, then companies must get optimum performance with efficiency and productivity. One of the alternatives is firm sometimes use merger to expand externally by acquiring control of another firm. Hopefully merger and acquisition can give positive contribution to the companies' performance, so they can make better profit. This project discussed about PT. XYZ performance after the acquisition. The aim of this project was to know the change in PT. XYZ performance between before the acquisition and after the acquisition. The method that was used to analyze this project was by using financial ratio calculation. Moreover was used also EVA analysis that was alternative as financial ratio analysis. EVA was also used because EVA put the cost of capital and reflected the actual condition for the PT. XYZ performance compared with the financial ratio approach.The variable that was used was results of the financial ratio calculation (ROE and ROA) and Economic Value Added (EVA) that was taken three years before acquisition and five years after the acquisition (1999-2007).The sample that was used was taken from PT. XYZ that was acquired by ST. ABC from Singapore. Results of this analysis were that the PT. XYZ performance before being sold to the foreign group showed the decline performance. This could be proven with results of the negative of EVA calculation before the acquisition, the decline in the share price, and the decline of return that was given by PT. XYZ through the ROE-ROA calculation. After the corporate action was carried out, PT. XYZ showed the very good and proceeding stable performance until 2007. These results proved that corporate action that was carried out by PT. XYZ was the best strategy to rescue PT. XYZ performance that descended. And this project also proved that the calculation of company performance could use EVA method, financial ratio (ROA and ROE) but also proved that the existence of the relevance between the two methods so as these methods could be used by the investor to consider the performance of a company. As the addition of the recommendation, this project could be analyzed more far by using other company performance assessment method like for example by using market value added (MVA) so that more could produce the assessment accurately and could help the investor in taking the decision to do investment to a company.