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To illustrate this point, a Free Cash Flow analysis was completed both before and after the merger. It seems the Free Cash Flow of May’s grew by about $498 million following the merger due a lower investment in working capital and fixed assets stemming from better efficiency in ongoing operations of the merged companies.

Analysis of May’s 2006 financial statements find financial changes between those two years has adversely altered its financial position in the short-term due to the additional costs of the merger and a cumulative $1.4 billion decrease in the total asset base.

Combined these financial changes have unfavorably effected both the profitability performance of the company and perceived risk by outside groups. Conversely, the increase in free cash flow and better asset management following the merger signal the beginning of cost reductions and improvements that over time will lead to a growth in earnings for May’s and its shareholders.