Write a 10 pages paper on international business finance. The report also explores re-domiciling of IFM Plc from France to Monaco, in which the report establishes that there is a logical point of view based on a business perspective. In addition, the report addresses the plans set put by the company in expanding into Asia (India and China) that will require about €250 million. Although, the expansion will deliver growth of about 5% in the next five years and is worth undertaking, it carries high risks connected to the massive investment required. The high gearing level of 88% indicates that IFM Plc is significantly exposed to financial risk. The report outlines options that the company can implement to lower its gearing level and attract funding. however, this remains uncertain owing to the interplay of factors involved. In this section, the reports explore the diverse sources of finance that IFM Plc can utilize in its expansion into Asia and the factors that impact on the sources of finance.
The report analyzes and appraises prospective venture between IFM Plc and a German subsidiary (EMF Plc), re-domiciling from France to Monaco and pursuing with its expansion efforts into Asia. Indeed, such a move will make sense since the bulk of the business operations are run in Monaco. nevertheless, such a move could hurt the company’s image since it will be purely for profit and the shareholders may not welcome the idea. In the analysis, the report illuminates the operational and strategic challenges that can create costs and benefits in re-domiciling the business into Monaco. The expansion into Asia will help the company to gain access to fresh markets into India and China, especially given that India and China are high-growth countries.
The joint venture represents a legal entity that takes the nature of the partnership involved in the joint undertaking of a certain transaction for mutual benefit.