Business expansion has grown dramatically over the last decade, bringing with it major changes in the organization and control of economic activity around the world. A company wants to expand its activity to achieve advantage of exposing the business to a wider audience and to exploit favourable financing opportunities.
The purpose of this report is to identify whether Stetson Group PLC should expand its planned business activities through acquisition and market development and how to finance its expansion and cope up with external issues.
This report provides information obtain through free cash flow methodology, Net present value calculation, sensitivity analysis and hedging option available to the company. All the relative calculation is in the three different appendices.
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Executive summery
- 1.1 Free Cash flow
- 1.2 Hostile takeover:
- Staggered Board:
- Poison Pills:
- Non-Voting and Multiple Voting Shares:
- Litigation:
- Crown Jewels:
- White Knights and white squires:
- Golden Parachutes:
- 1.3 Cash offer and mixed mode finance offer:
- 2.1 Exchange control Restricted remittance
- 2.2 Investment decision Sensitivity analysis
- 2.3 Foreign exchange risk.
- 3.1 Credit risk exposure.
- 3.2 Hedging options.
- Forward contract
- Future contract
- Option contract.
- 3.3 Development in world financial market
- 2008 financial crisis
- Dark pool trading system
- Free movement of capital.
- Money laundering regulation
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This report examines Stetson Group PLC's planned business expansion through acquisition and market development, focusing on its proposed takeover of Fly-up Airways and expansion into Cambodia. It aims to assess the feasibility of this expansion, identify the financial implications, and analyze the potential risks involved.
- Valuation of Fly-up Airways
- Financing options for the acquisition
- Risk management strategies for international expansion
- Impact of global financial market developments on the acquisition
- Analysis of credit risk exposure and hedging options
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: Provides an overview of the report's purpose and scope, highlighting the importance of business expansion and its strategic implications.
- Executive Summary: Presents a concise summary of the report's findings, including the potential value of Fly-up Airways, the financial viability of the Cambodian expansion, and recommendations for financing and risk management.
- 1.1 Free Cash flow: Evaluates the potential value of Fly-up Airways using the free cash flow methodology, providing a maximum price Stetson Group should pay for the acquisition.
- 1.2 Hostile takeover: Discusses defensive strategies Fly-up Airways might employ to protect itself from a hostile takeover bid, including staggered boards, poison pills, and litigation.
- 1.3 Cash offer and mixed mode finance offer: Explores different financing options for the acquisition, considering both cash and share-based offers.
- 2.1 Exchange control Restricted remittance: Analyzes potential exchange control issues and restricted remittance regulations that Stetson Group may encounter during its international expansion.
- 2.2 Investment decision Sensitivity analysis: Assesses the financial viability of the investment in Cambodia through sensitivity analysis, exploring the impact of different factors on the investment's return.
- 2.3 Foreign exchange risk: Identifies potential foreign exchange risks associated with the international expansion and discusses risk mitigation strategies.
- 3.1 Credit risk exposure: Examines the credit risk exposure associated with the acquisition and expansion plans, analyzing the impact of borrowing requirements on the company's financial stability.
- 3.2 Hedging options: Discusses various hedging options available to mitigate credit risk exposure, including forward contracts, future contracts, and option contracts.
- 3.3 Development in world financial market: Examines the impact of recent developments in the global financial market on the acquisition and expansion strategy, including the 2008 financial crisis, dark pool trading systems, free movement of capital, and money laundering regulations.
Schlüsselwörter (Keywords)
This report focuses on key concepts such as business expansion, mergers and acquisitions, international finance, risk management, hedging strategies, credit risk, exchange rate risk, and global financial market trends. It examines the acquisition of Fly-up Airways, expansion into Cambodia, and the impact of recent financial developments on the company's strategy.
- Quote paper
- Kamrul Islam (Author), 2015, Proposed acquisition, business expansion and development in the world financial market, Munich, GRIN Verlag, https://www.grin.com/document/456105
