Essays on Corporate Financial Management Assignment

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The paper “ Corporate Financial Management” is a meaningful example of a finance & accounting assignment. A takeover in the United Kingdom refers to the acquisition of public companies and this process is usually governed by the city code on takeovers and mergers that are also known as city codes or takeover codes (Arnold, 2005, pp. 45-65). The code requires that all the shareholders in any particular are supposed to be treated equally and gives the necessary regulations on when and what kind of information the party companies must and also cannot release publicly that are in relation to the bid, the set timetables for the particular aspects of the bid and also thus sets the minimum levels of the bid that follow the previous purchase of shares (Arnold, 2005, pp.

23-78). Most companies are said to have acquired many other properties using this mechanism for reasons. Some are said to be opportunists whereby they find out that the target company is going for a reasonable price due to reasons based on the company itself and with this, the buying company decides to buy it based on the future strategy that they have laid in relation to profit-making(Arnold, 2005, pp.

45-65). On the other hand, others are called strategic buyers where they are thought to have other effects of buying that could be beyond the simple effect of the making of profit in their company. Some of the advantages to the acquiring company will be in the improvement of the distribution capabilities. On most occasions, target companies seem to be attractive because they allow the taking company enters a market without taking the risks, time, and even the expense of venturing into new markets (Eiteman, Stonehill, Moffett, 2007, pp.

67-89). Some takeovers happen because the acquiring wants to reduce completion from this profit-making company. Also, this happens so that the acquiring can make profits using combined efforts of the two companies rather than two separately operating companies due to the reduction of the redundant functions. PCL company management or shareholders may also benefit from the principal-agent problems that are usually associated with the compensation of the top executives.

References

Arnold, G., (2005), Corporate Financial Management, 3rd edition, Harlow: Pearson Education Limited, pp.23-78

Eiteman, D., Stonehill, A., Moffett, M., (2007), Multinational Business Finance, 11th edition, Harlow: Pearson Education Limited, pp.67-89

Madura, J., (2008), International Corporate Finance, 9th edition, USA: Thomson South-Western, pp.34-56

Shapiro, A., (2006), Multinational financial management, 8th edition, USA: John Wiley& Sons, pp. Financial Management,pp. 56-89

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