Understanding the Strategic Role of Financial Statements through a Case Study on Corporate Mergers
Abstract: This article examines the critical role of financial statements in strategic decision-making, particularly within the context of mergers and acquisitions. Through the lens of a case study involving the all-stock merger of Washington H. Soul Pattinson and Milton Corporation, the paper highlights how an understanding of balance sheets, income statements, and cash flow reports can inform value-based decisions. It presents evidence of shareholder value creation by leveraging overvalued stock, and improved liquidity post-merger. The study underscores the necessity of financial literacy and accurate valuation to drive informed business strategy.
Keywords: financial statements, strategic decision making, balance sheet, shareholder value, mergers and acquisitions
How to Cite?: Marcello Sequeira, "Understanding the Strategic Role of Financial Statements through a Case Study on Corporate Mergers", Volume 14 Issue 5, May 2025, International Journal of Science and Research (IJSR), Pages: 339-346, https://www.ijsr.net/getabstract.php?paperid=MS25503083346, DOI: https://dx.doi.org/10.21275/MS25503083346