International Finance & Capital Markets

International Finance & Capital Markets Essay example
Masters
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Finance & Accounting
Pages 24 (6024 words)
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International Finance & Capital Markets Executive Summary Growth of any business internally can encounter high risk in this dynamic world of business. Thus there is always a need for acquiring existing business by the entrepreneurs. The strategy is less risky and it eradicates the problems that are encountered if the business is going to get started from scratch (i.e…

Introduction

The company has the desire to acquire China COSCO Holdings Company Limited, which is mainly a logistics and shipping supplier company. The plan for acquisition is evaluated in order to examine whether it will be a success for both the companies. Babcock International had been planning for expansion internationally for the past few years. However, they were targeting the Chinese market in particular. The acquisition plan has been in the negotiation stage and thus there is a need for providing the Board of Directors of Babcock International with recommendations from the financial director regarding the collaboration with COSCO. The cross border acquisition brings a number of issues like the exchange rate risk along with the cross border trade. The plan is evaluated by evaluating the solvency, liquidity and the profitability position of both the companies. The balance sheet of the companies is compared in order to make a decision regarding the collaboration plan. The recent acquisitions of Babcock International are also examined in order to evaluate the strength of the company and get an idea whether it is capable for the acquisition of COSCO. ...
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