Corporate restructuring - small business issues.

MOD003319 Business Finance

Task

Corporate Restructuring and Issues Relating to Small Businesses

In this final unit we will look at two quite diverse topics. In the first we will consider why companies seek to expand by means of acquisitions or mergers, or to reduce their scale of operations by divestment. In the second we will focus on issues relating to small businesses, and compare and contrast the position of these businesses with that of larger organisations in respect of many of the topics we have covered in this module.

In this unit we shall:

Examine reasons for the popularity of takeovers/mergers

Consider the practicalities of financing mergers

Examine the reasons for divestment

Consider some of the specific issues facing small businesses, particularly in relation to available sources of finance, and appropriate methods for valuation On completion of this unit you will be able to:

Evaluate the advantages and disadvantages of achieving growth by means of mergers

Explain the reasons for companies undertaking divestment, and alternative means of achieving this

Appreciate the particular issues facing small businesses in all aspects of business finance

Required Reaing

For this unit you should read the following from the core text: McLaney, E. (2017) Business Finance: Theory and Practice (11th Ed). FT Prentice Hall.

Chapter 14 - Corporate Restructuring (Including Takeovers and Divestments)

Chapter 16 - Small Businesses

Additional Reading

Guo,S., Hotchkiss, E. S. And Song, W. (2011) 'Do Buyouts (Still) Create Value?' Journal of Finance 66 (2): 479-482. Online via Essex eLibrary.

Question:

By the end of this unit you need to reflect on the learning experience in the overall module and how you will be able to apply it to your personal and/or professional life.

Write a short (approx 300-500 words) summary to explain:

The key things you learned in this module
Whether your learning from this module has resulted in changed behaviour/ performance/ perspectives, and if so, in what areas - study/ work/ home life? Give specific examples.How they can aid your personal and professional development?
Has it helped your career? How - be specific.
Is there room for further development in any of the topics covered?

My Personal and Professional Background:

Founder of Advertising and Communication firm in Hong Kong

Founder of Digital, Social Media & ICT firm in Hong Kong

Founder of Professional Cleaning Product and Service Company in Hong Kong

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