Schneider's has come off a period of restructuring and now is looking to be in the forefront of the consolidation in the industry that it feels will happen globally. Schneider feels that with the advent of worldwide harmonization of standards, probably to the European IEC, the playing field will narrow to only global players. At this time Square D was not interested in being acquired. In order to judge the strategic fit of these two …
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…In addition to the 1990 ratios, such as the current ratio and debt/equity ratio to Schneider's would have a beneficial impact, but assuming that the purchasing price will be raised by debt, those would probably turn into a negative impact. Due to all these issues, I would not recommend the purchase of Square D if I were Schneider. Reference: Palepu, K., Healy, P., and Bernard, V. (2004). Business Analysis and Valuation Using Financial Statements. Ohio: Thomson-Southwestern.