The company lacks cohesion in terms of pulling the efforts of different subsidiaries together and this is the main reason why it is performing poorly. Therefore, there are certain issues that should be taken into account by Buildalot in order to improve its operations as going to be shown in the recommendations section of the report. 6 Market economy 6 Market competition 6 Equity capital structure of the company 7 PEST analysis 7 Major construction projects 8 Office building construction 9 House building construction 10 Business operational issues 11 Mayo project issues 12 Corporate social responsibilities 13 Financial statement analysis 13 Trend analysis 13 Ratio analysis 14 Recommendations 16 Referencing 18 Bibliography 20 Introduction This report deals with business analysis of Buidalot from a corporate finance perspective. This is an Ireland based Construction Company and it has been experiencing cash flow difficulties due primarily to the slow selling of houses and offices in the Mayo development project. This study will assess the major issues affecting different sectors of business in this construction company. A detailed SWOT and PEST analyses of the situation of the company will be conducted to evaluate the causes of the problems it is currently facing. This study will also evaluate the financial situation of different projects being undertaken by the company through business strategy techniques and financial strategy techniques like re-forecasting, cost of capital, net present value and business valuation. Then appropriate recommendations will be provided at the end of the report in order to effectively deal with the issues raised. Background of the company Buildalot is a 50 year old construction company and it is based in Ireland. The company was incorporated 30 years back as a group of companies. This consists of different wholly owned subsidiaries that operate in different segments of the construction industry. The three major segments that are the main focus of the company’s business include the following: major construction projects, house building construction and office building construction. The subsidiary that operates in major construction projects is based in different countries but it mainly focuses on Ireland. Office building subsidiaries undertake projects related to office constructions. It operates in Europe and Middle East along with successful penetration in the home country of Ireland. The company House building subsidiaries also operate internationally. The company initially used to engage in residential house building in Ireland and it started construction of these major segments after incorporation about 30 years ago. Situation analysis (SWOT) Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the external environmental factors are regarded as either opportunities or threats. The aim of performing a SWOT analysis is to critically analyze all the internal and external factors’ that may affect the operations of the organization (Strydom, 2004). The table below summarises the SWOT analysis for Buildalot. Strength Weakness 1. The current ratio of the company’s working capital is high 2. The fixed asset turnover of Buildalot is also high 3. Employees are able to deal with
Applications in Corporate Finance Table of Content Introduction 4 Background of the company 4 Situation analysis (SWOT) 5 Basically, SWOT stands for strengths (S), weaknesses (W) while on the other hand the external environmental factors are regarded as either opportunities or threats…
.....Financial Times Advanced Corporate Finance Assignment Name Surname Educational Institution Introduction It was estimated that 55,000 acquisitions valued at $1.3 trillion were materialised in the 1980s. Due to globalisation, the merger and acquisition activities reached $3.44 trillion in 2010.
This is a business report which deals with business analysis in corporate finance perspective. The name of the company is Buidalot which is an Ireland based Construction Company. This study will assess the major issues of this business from different areas of its business. Prioritisation of major issues is the first objective of this study.
Share price refers to the price of a single share that company issues for subscription. While taking decision on share subscription, an investor compares the share price with company’s financial statements.
Capital budgeting to facilitate the growth seems hectic since production division was weighing each project proposals. The two proposals to strengthen the division’s innovative product lines also drive future growth were major consideration. However; due to financial restraints financial committee may not approve both projects.
each gearing level; to determine the EPS for each level of gearing under a bad year or good year; to construct a graph where EBIT and EPS are the axes and , using the EBIT-EPS data that will be developed, plot the data on the graph and discuss the possible ranges where lower
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Cost of Equity = Dividends per Share (of next year)/current market value of stock) + (growth rate of dividend). For Woolworths Limited Company, the dividend per share for next year was 71 (Woolworth Limited Annual Report 2013, pg. 48)
Instead of this, the market worth of the company depends on its operating profits. Company’s capital structure is the means by which a company funds its assets. It can finance or fund its operations either
Further, the small and medium businesses contribute to the competitiveness of an economy by a process of economic renewal (Rathakrishnan, L. 2010). They usually create, eliminate and finally they reorganize economic sectors. Small and
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